BridgeInvest Provides $56M Loan for Houston Multifamily Property

The community is located near Houston’s downtown. Image courtesy of BridgeInvest

Houston-based Tara Capital, a real estate investment firm focused on the multifamily sector, has secured a $55.5 million loan to support the acquisition and renovation of Park on Voss, an 810-unit-garden-style community in Houston’s Westchase submarket.

Tara Capital, which is rebranding the property as Star Voss, acquired the asset for $63 million, with total project costs estimated at $82.1 million. The company plans to renovate 610 units comprehensively and upgrade the remaining 200 units that have already undergone some renovations. The complex was built in 1971.

The loan will fund new appliances, HVAC systems and exterior enhancements such as lighting and landscaping. The owners also plan to make repairs to elevators, sidewalks and roofs. Once the renovations are completed and the property is stabilized, Tara Capital intends to refinance the BridgeInvest loan with permanent debt as part of a long-term investment strategy.

Property details

Located at 2424 S. Voss Road, the property spans 610,950 square feet. Situated between Westheimer and San Felipe roads, the community is near the Galleria market, offering convenience  and accessibility to residents. The property is in close proximity to major employment hubs including downtown Houston, the Galleria, Greenway Plaza and Texas Medical Center. It is also near several of Houston’s major throughfares including Westpark Tollway, I-69 and I-610.

The property has a mix of studios, one- and two-bedroom floorplans. Features include hardwood floors, large-oversized windows, dishwashers, walk-in closets, fireplaces and ceiling fans in select units and patios or balconies.

Community amenities include a business center, fitness center, event space, tennis and volleyball courts, package lockers, picnic area with grills, dog park, laundry facilities, on-site convenience store and coffee bar. The property has a parking garage and off-street parking options.

Strong market

The Houston multifamily market entered 2024 with strong fundamentals. It was one of the few in the United States to see starts jump even as the pipeline elsewhere moderated. Rent growth outpaced the national average and remained flat on a trailing three-month basis, while the U.S. rate dropped 0.2 percent, according to Yardi Matrix data. Houston rents were up 0.7 percent year-over-year to $1,351, outperforming the U.S. average. While the metro’s occupancy dropped by 50 basis points in the 12 months ending in January, it still checked in at 92.9 percent. Investment sales were slow, only reaching $119 million in assets traded in January but the price per unit rose to $158,865.