29SC Expands Houston Presence With Value-Add Asset
- Nov 05, 2018
Cali Sommerall Apartments, a 368-unit community located in the Copperfield/Bear Creek submarket of Houston, is now under 29th Street Capital’s (29SC) ownership. The new owner plans to rebrand the property with a new name, logo and signs.
The seller and price tag were not disclosed, but according to Yardi Matrix data, the asset was last acquired by B & M Management from Trammell Crow Residential and subject to a CMBS loan in the amount of nearly $21 million. Cali Sommerall Apartments is a 17-building property located on nearly 15 acres at 6777 Sommerall Drive, some 23 miles northwest of downtown Houston. Walmart, The Home Depot, Target, Marshalls, Kroger, Bath & Body Works, CVS and Starbucks are in proximity.
“We have a solid portfolio in Houston and feel the improving local economy justifies further expansion,” Doug Burt, vice president of acquisitions for 29SC Houston and Central Texas, said in prepared remarks. “Cali Sommerall is in a strong school district with projected high population growth.”
The unit mix features one- to three-bedroom units averaging 991 square feet, with washers and dryers, above standard ceiling height, dual-pane glass and private balconies/patios. Privately held 29SC plans to invest more than $2 million in capital improvements—new granite countertops, a new paint scheme, hardware and fixtures. Future amenities include a package locker delivery system, a dog park, fitness equipment and grilling stations. Renovations are also planned for the clubhouse, leasing office, pool and surrounding areas.
“With oil prices stabilizing, Houston is feeling a positive boost in the economy,” Burt added. “Houston continues to add jobs at a high rate. With a slowdown in the new supply pipeline for apartments, we feel Cali Sommerall will be positioned to offer high quality, yet affordably-priced housing in a high growth submarket.”
Images courtesy of Yardi Matrix