JV Acquires Houston Rental Property

Excelsa Properties and GoldCor Capital Partners purchased the 392-unit community, Bayou Parc at Oak Forest, as part of a $86 million value-add strategy.

Bayou Parc. Image courtesy of Excelsa Properties

Excelsa Properties has teamed up with GoldCor Capital Partners to acquire Bayou Parc at Oak Forest, a 392-unit community in Houston, as part of an $85.6 million value-add strategy in the Southeast and Mid-Atlantic regions of the U.S. The seller was Tradewind Properties, according to Yardi Matrix data.

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Excelsa provided 95 percent of the deal’s equity while GoldCor sourced the opportunity and brought the remainder of the equity. The joint venture plans to invest more than $4 million to upgrade the property at 4000 Watonga Blvd., including improvements to the home interiors and common areas and the addition of a second clubhouse.

Completed in 1974, the property consists of 36 two-story buildings and is about 94 percent occupied. Units range from studios to three-bedroom layouts measuring 480 to 1,210 square feet, with monthly rents ranging between $665 and $1,365. Common amenities include a fitness center, business center, clubhouse, pool, picnic area, playground and two dog parks. With more than 6,000 units scheduled to come online in Houston by the end of the year, the metro’s average rent is projected to increase by 2.2 percent in 2019, according to a recent market report by Yardi Matrix.

Tradewind Properties bought the asset from CrestMarc Capital Partners in 2016. Although the price of the most recent sale is undisclosed, Yardi Matrix indicates that Greystone originated a $23.5 million permanent loan funded by Fannie Mae in connection with the deal in June.

The transaction comes after Excelsa Properties raised $85.6 million through Excelsa US Real Estate I LP to acquire value-add multifamily properties. Excelsa Properties is the real estate investment arm of Lebanon’s Excelsa Holding, which operates in the Middle East, Portugal and the U.S. and has $300 million in total assets under management.

The company’s investments in the U.S. also include apartment communities in Washington, D.C. and Gainesville, Fla., as well as two office buildings in Charleston, S.C.

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