Sade Real Estate has acquired a luxury residential property in River Oaks for $128.5 million, as it hopes to capitalize on the scarce supply that exists in the Houston neighborhood.
Hudson Bay Capital provided acquisition financing for the transaction, which was arranged by Walker & Dunlop.
The CRE brokerage said that the property benefits from the neighborhood, where supply for luxury residential is limited, with demand for the product high, thanks to strong long-term household wealth in the area. Also, River Oaks is known for its urbanized climate and luxury retail, which also attracts affluent folks.
"The combination of River Oaks' long-term fundamentals, Houston's continued population growth, and highly selective development activity continues to reinforce the neighborhood's exclusivity and long-term value," Yoni Sade, chairman and CEO at Sade Real Estate, said in a statement.
"Walker & Dunlop and Hudson Bay Capital understood both the vision and unique positioning of the asset, helping us secure a financing structure that supports the development."
The asset, known as The Arno, consists of 168 units. The property is within walking distance of the River Oaks Shopping Center, Central Market and Highland Village.
In a recent Houston multifamily investment report from Marcus & Millichap, the CRE firm named River Oaks as a neighborhood that investors have been flocking to due to limited supply. Overall in the Space City, deliveries are projected to fall to their lowest level seen since 2013 this year. That's expected to result in multifamily rents advancing by 2.3 percent to an average of $1,410 per month.
For multifamily nationally in 2025, Walker & Dunlop said that it sourced almost $16 billion for the multifamily sector of the more than $22 billion it arranged from non-agency capital providers.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.