Metro Houston Apartment Property Sells
A local investor acquired the 288-unit property.
The 288-unit Vanderbilt Apartments, located in metro Houston, has been acquired by a local investor. Gupta Vanderbilt Place LLC sold the property for an unspecified price.
Vanderbilt is located in Clute, a town of about 10,000 in the southern part of the metro area, near the Texas coast. Located at 101 Hackberry Street, Vanderbilt Apartments dates from 1978 and features floorplans that include one-, two- and three bedrooms, which list for $595 to $1,145 per month, with a discount offered on the first month rent for seven-month leases.
Common amenities include an outdoor swimming pool, grill area, playground and dog park. The property features onsite management and laundry areas, and is close to a number of shopping centers and recreation facilities, as well as the Gulf Coast. Unit amenities include all-electric kitchens, a breakfast bar, ceiling fans, walk-in closets and a balcony or patio.
Marcus & Millichap’s Nico Bianchi, who brokered the deal with colleague Kent Myers out of the company’s Austin office, said in a statement that the property has substantial potential for value enhancement and that investors were interested in the property despite the current investment climate.
Greater Houston multifamily sluggish
Demand is down for Houston apartments, according to Marcus & Millichap, which reports that net absorption is expected to shrink by about 4,500 units this year compared to 2023. That will create a third straight vacancy rise to 8.1 percent by the end of the year, the company forecasts.
That is the case despite the slowdown in development of multifamily assets in the area. Houston is the only major Texas market to experience inventory growth below 3 percent this year, Marcus & Millichap notes. The 2024 delivery volume is projected to be just above the mean annual total over the previous decade of 16,300 units.
The relatively weak fundamentals for the market will spell low rent growth in 2024 as owners and operators focus on maintaining occupancy. Houston’s average effective rate will inch up to $1,372 per month, Marcus & Millichap forecasts.
