Knightvest Refis Houston Townhome Community
Mesa West Capital provided the five-year, floating-rate loan.
Knightvest Capital has secured an 81 million refinancing loan for Domain Memorial, a 313-unit townhome community in Houston. Mesa West Capital provided the five-year, floating-rate loan.
A portion of the proceeds will be used by Knightvest to complete interior renovations that have increased occupancy and rent premiums since the company acquired Domain Memorial four years ago. The property is currently 95.2 percent occupied.
Knightvest purchased the property at 14800 Memorial Drive in the Briar Forest/West Memorial submarket for an estimated $78 million from developer CityStreet Residential in March 2022, according to Yardi Matrix. TIAA provided a $58 million loan at that time, the same source shows.
Domain Memorial was built in 2016 and spans 12.71 acres. Since its ownership, Knightvest has made extensive renovations across the majority of units, along with exterior and common area upgrades. Improvements have been made to the parking lot, including installation of a new electric vehicle charging station, as well as enhanced lighting and landscaping. Knightvest also made updates to the clubhouse, pool and fitness center.
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Brian Hirsh, head of Mesa West Capital’s central region, led the origination team out of Chicago along with Associate Jonah Sacks.
Closer look at the townhomes
Domain Memorial has 29 residential buildings and a mix of one-, two- and three-bedroom, two-story townhomes with an average size of 1,300 square feet. Rents range from $1,803 to $3,884, with an average of $2,269, according to Yardi Matrix.
The units have large windows, walk-in closets, stainless steel appliances, quartz countertops and washers and dryers. Select units have private balconies or patios as well as direct-access garages.
In addition to the pool, clubhouse and fitness center, community amenities include a media room and a business center. The property has controlled access and 626 parking spaces.
Domain Memorial has proximity to the Energy Corridor, which is home to 11,000 jobs. The property is also close to more than 2 million square feet of retail, dining and entertainment options. Nearby recreational amenities include more than 500 acres of parkland.
Investing in Sun Belt metros
Knightvest, a Texas-based multifamily investment and management firm, this past month acquired Ardan West Village, a 23-story, 389-unit luxury apartment building in Dallas that it rebranded as Ardan Apartments. The sale price was not disclosed. The owner was Brookfield Properties, according to Yardi Matrix.
The firm, which has offices in Dallas and Houston, owns 67 assets in Texas, including in both metros. In addition to Texas, Knightvest makes investments in South Carolina, North Carolina, Florida, Oklahoma and Arizona. The firm has invested in approximately 60,000 units with a total capitalization of $10 billion since its founding in 2007.
In late February, Knightvest acquired Gables Post Oak, a 316-unit community in Houston that it rebranded as Hollings Post Oak.
Earlier this year, the company purchased Heritage Estates, a 230-unit multifamily property in Orlando that was rebranded as The Palmer. It was the third acquisition Knightvest had made in the Orlando area within six months.
