ClearWorth Capital Buys Texas Community

The Palm on South Padre. Image courtesy of ClearWorth Capital

ClearWorth Capital has recently acquired The Palm on South Padre, a 299-unit community in Corpus Christi, Texas, with plans to overhaul the nearly half-century-old property.

Located at 7218 S. Padre Island Drive, the property was built in 1973 and is currently about 90 percent occupied, according to Yardi Matrix. Records indicate that Commerce Capital Partners bought the asset from ACSI Property Management for $11.3 million in 2013. The terms of the most recent sale were not disclosed.

The property sits on a 10.7-acre site nearb Corpus Christi Bay in South Texas and features two swimming pools, an onsite dog park and a large outdoor courtyard. Nearby demand drivers for the residential asset include Texas A&M University Corpus Christi, the Naval Air Station and the Corpus Christi Medical Center.

ClearWorth Capital, an investment management firm led by Matthew P. Stone, plans to roll out a “dramatic physical transformation” of the interior and exterior of the property, including full upgrades to the unit interiors, new and renovated common spaces, new signage, landscaping redesign and fresh exterior paint, according to a prepared statement.

Value-add partnership

For The Palm on South Padre, which marks the company’s twelfth renovation effort, ClearWorth is teaming up with multifamily property management and construction firm NOI Property Management.

ClearWorth notched a similar deal last October when it acquired Redford Park Apartments, a class B Community in Conroe, Texas, with the aim of thoroughly renovating the 212-unit asset built in 1983. NOIPM was tapped to manage the property, which changed hands for $21.6 million.

Following that purchase, ClearWorth purchased The Edge at City Centre, a 284-unit community in Houston. The seller had already spent millions to renovate and reposition the asset, which was also built in 1983.