The joint venture originally purchased the property in 2015 and achieved a favorable return thanks to a strong strategic improvement campaign.
“Huntington Glen was a very appealing property that offered us a nice value-add potential when we identified it as an opportunity in 2015,” Michael Flaherty, L5 Investments’ founder and managing partner, told MHN. “As soon as we closed escrow, we began to make the investment in some key community upgrades that we knew residents look for in apartment living today. Ultimately, we created a plan that could feasibly increase rents and garner a strong return over our relatively short hold period of three years.”
Enhancing the Property
Some of the strategic, value enhancing upgrades for this community executed included a major renovation of the pool area to give it a more modern and trendy feel, adding attractive sunshades to main areas of the property, landscaping improvements and making upgrades to the unit interiors.
“In the end, we were able to secure an even better than anticipated return for our investors,” Flaherty said. “This was due to our successful value-add campaign, as well as the greater Houston market seeing a rapid amount of economic growth and therefore, property appreciation. This was one of L5’s most successful exits to date.”
Located at 2023 Bissonnet St., the property was constructed in 1982, and is situated on approximately 10 acres. It consists of six two-story buildings, 11 three-story buildings, two laundry buildings and one office/clubhouse.
Unit amenities include kitchen pantries, ceiling fans, walk-in closets, laundry facilities, patios and balconies.
Huntington Glen Apartments boast a business center, custom accent walls, gated access, a playground and two swimming pools.
The property is situated on the corner of Bissonnet Street and Keegan Road, making it convenient to much retail, restaurants and grocery stores in the area. It’s also just three miles from Houston’s premier retail and office area, the Galleria/Uptown District; and approximately four miles from Sugarland; five miles from the Energy Corridor; and eight miles from downtown Houston.
According to L5’s recent analysis, Houston is the fourth most populous city in the U.S., and is the largest in both the southern U.S. and Texas. Houston grew 25.2 percent between the 1990 and 2000 censuses, increasing by more than 950,000. Woods & Poole Economics projects the city will rank fifth in the nation in population growth by 2030, adding 2.66 million people.
HFF’s Joey Rippel, Chris Young and analyst Connor Phillips represented the sellers in the sale.
In May, L5 Investments acquired Montrose Apartment Community, a 97-unit property in Burien, Wash., for $15.4 million.
Overall, L5 portfolio includes more than $375 million of assets totaling 4,100 units under management in seven states.