Civitas Capital Group Buys Luxury Houston Asset
Marcus & Millichap secured a $40 million acquisition loan from KeyBank.
Civitas Capital Group has acquired Territory at Greenhouse, a 288-unit multifamily property in Houston from Dahanani Private Equity Group. Marcus & Millichap arranged the deal on behalf of the seller, also helping the buyer secure acquisition financing.
KeyBank provided $40 million for the transaction, according to Yardi Matrix data. The loan is set to expire in June 2023.
Completed last year, Territory at Greenhouse is a LEED Certified garden-style community developed by Dahanani and managed by Allied Orion. At the time of the transaction, the property was 98 percent leased, according to Rootvik Patel, Investments Director for Civitas.
The asset encompasses 13 three-story buildings over 7.1 acres at 2500 Greenhouse Road. Apartments offer a one- to three-bedroom floorplan mix, with units ranging between 586 and 1,440 square feet. All units include washers and dryers and high-speed internet.
Residents have access to a gym, a business center, a swimming pool, a clubhouse and an outdoor amphitheater, as well as some 470 parking spaces. The pet-friendly community also includes a dog park and pet wash stations.
The property is next to Cullen Park and a shopping center. Downtown Houston is some 23 miles east via Interstate 10.
Multifamily expand in Texas
In the past two months, Civitas Capital Group expanded its Texas footprint by a total of 258 units with the purchase of The Atlantic at Kessler Park and Center Place Apartments, two value-add communities in the Dallas-Fort Worth metro.
As of May, Houston rates improved by 0.4 percent on a trailing three-month basis, 20 basis points below the U.S. average. The upscale Lifestyle segment performed better, with rents up 0.4 percent, compared to the 0.2 percent increase in the working-class Renter-by-Necessity segment, Yardi Matrix data shows.
When it comes to construction activity, Texas markets continue to be among the nations’ most active. As of May, Dallas led the way with 48,934 units under construction, representing 6.2 percent of existing stock, while Houston’s 32,675-unit pipeline accounted for 4.8 percent of inventory. Austin also made the top 10, with 33,226 apartments underway, representing a whopping 13.1 percent of existing stock.