BEAUMONT, TX-A San Francisco investment group has put up slightly more than $10 million for a class A, 152-unit complex in a plan to collect on the upside from a future expansion on 10.2 extra acres of developable land. The sale is believed to have set a record for a fast-growing suburb northwest of Houston.

Lynch Investments LLC bought the Pointe Apartments at 4165 Dowlen Rd. in Beaumont from Weston Apt. Homes Inc., a local custom homebuilder who spent three years developing the 14-building complex. The 14.3-acre project, finished earlier this year, was 99% leased at sale time.

“I could have had 20 offers, but the San Francisco buyer flew out and looked at it right away,” Gregory Keith, an investment specialist in Marcus & Millichap’s Austin office, tells “This is the first verifiable apartment sale in the Beaumont area that was over $60,000 per unit.”

Keith says the hurdle to jump was finding a buyer who saw the opportunity rather than viewing the listing as a smaller property in a city nearly 90 miles from the Houston line. “It’s not 300 units and it’s not in Houston or Dallas, but it’s a fantastic deal,” he says. “They did a good job of buying it and they looked at it as an opportunity.” Not only is it the only multifamily product near Parkdale Mall, but it neighbors a Wal-Mart, Barnes & Noble and a string of restaurants. The buyer, who owns multifamily assets in Houston, secured a Freddie Mac loan through Jeff Knowles in Holliday Fenoglio Fowler LP’s Houston office to make the close.

Keith says the buyer first optioned the extra land and then opted for a lock, stock and barrel buy of the seller’s first class A multifamily development. The land is the key to the upside, allowing for expansion and the addition of amenities like a swimming pool, fitness center and covered parking. Though labeled a class A, the Pointe is outfitted with only a sports court although interiors are top of the line, says Keith, who will shift his operations base in the fourth quarter to Marcus & Millichap’s San Antonio office. “They could really turn the entire property into a project that suits their management style and be an institutional-quality, class A (development).”

The Pointe Apartments is a mix of 50 one-bedroom and 102 two-bedroom units, ranging from 667 sf to 1,201 sf. Rents start at 85 cents per sf and go up to $1.10 per sf. Houston-based Capstone Management Co. is taking over the asset’s management.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.