JV Buys Upscale Houston Mixed-Use

Elan Memorial Park. Image courtesy of DLP Capital

DLP Capital and ORP Investments have acquired Elan Memorial Park, a mixed-use multifamily community in the Neartown-River Oaks submarket of Houston, Texas.

Situated at 920 Westcott St. near Memorial Park, the 9-story, 297-unit property features premium retail spaces. Built in 2016, it is located in a much-coveted live-work-play district 4 miles from downtown Houston and near Texas Medical Center. Features and finishes of apartments include 10- to 13-foot ceilings, ceiling fans, built-in desks and bookshelves and private backyards, patios or balconies. A courtyard pool with coffee bar represents one of the prominent common-area amenities of the property.

Market shift

“The property’s sponsor had completed due diligence and was preparing to close on its purchase when capital markets shifted significantly,” Lou Davis, managing director of investments at DLP Capital, told Multi-Housing News. The resulting rising rates and declines in loan proceeds presented a challenge. DLP Capital partnered with the sponsor to negotiate a price reduction with the seller, rather than the seller losing out on a “bird-in-hand.” “We also adjusted the capital stack to an appropriate LTV and loan size,” added Davis.

The acquisition turned out to benefit buyer and seller. “We’re excited about the superior quality of this asset,” said Davis.

Affluent enclaves

Elan Memorial Park stands at near 92 percent occupancy. It is proximate to other high-end Houston neighborhoods. The Neartown-River Oaks submarket has attracted many older adults seeking to downsize. Job growth in greater Houston is expected to better national averages over the coming half decade, according to the U.S. Bureau of Labor Statistics. That’s likely to lure additional residents and add value to Elan Memorial Park.

Last month, DLP Capital acquired Domain at Morgan’s Landing in metro Houston.