Nord Group Buys Houston-Area Community

Nord Group has acquired a 228-unit apartment community in Lake Jackson, Texas, a Houston suburb that’s seeing healthy job growth. The firm purchased Edgewater Apartments from Redwood Capital Group for an undisclosed price. Berkadia represented the seller in the transaction.

The garden-style community was built in 2005 and has its units spread throughout 19 two-story buildings. Edgewater Apartments includes one- and two-bedroom units that range from 742 to 1,319 square feet and include built-in desks and bookshelves, garden-style bathtubs, walk-in closets, and private patios or balconies. The community’s amenities include a pool, picnic arbor, pet park, fitness center, clubhouse with a business center, and social areas. The community is currently 93 percent occupied.

Located at 514 That Way St., Edgewater Apartments is approximately 45 minutes south of Houston. The community’s location gives residents a short drive to the area’s two major petrochemical companies, Dow Chemical and BASF. Chris Curry, senior managing director at Berkadia, said in prepared remarks that the city’s regional economy is anchored by an expanding petrochemical industry that’s driving housing demand. Edgewater Apartments is also located near other major employers like Olin, Wood, Brazos Mall and St. Luke’s Health- Brazosport Hospital.

Houston’s labor comeback

According to Marcus & Millichap’s third quarter report on Houston’s multifamily market in 2022, strong labor dynamics have been fueling the metro’s recent growth. Following the start of the Ukraine invasion, labor demand for the natural resource and mining sectors have grown, followed by the recovery in the leisure and hospitality sectors, as well as the construction industry. The combined job creation in Houston’s various sectors has led to an increase in metro’s housing demand.

The report also noted that Houston’s average effective rent grew 14 percent year-over-year, with all 35 submarkets of Houston experiencing higher rents during the 12-month period. Houston’s vacancy rate is down 160 points year-over-year, but 16,399 new units were introduced to the market, representing a 2.2 percent increase year-over-year.

Nord Group has invested heavily into the Texas metro with several Houston communities in its portfolio. The equity firm with headquarters in Jersey City, N.J. and Hosuton also has communities in The Bronx and Yonkers, N.Y., and Euclid, Ohio in its portfolio, which totals $400 million in assets under management across the U.S.