29th Street Capital Expands Houston Portfolio
- Sep 01, 2020
Real estate investment firm 29th Street Capital has expanded its Houston footprint with the acquisition of Greenhouse Apartments, a 350-unit apartment community in the suburb of Katy, Texas. The purchase marks the company’s 11th acquisition in the Houston area.
The firm did not disclose a sale price, but Yardi Matrix data shows that the property sold for $53.3 million from seller Kairoi Residential.
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Located in the Cinco Ranch area, about 22 miles west of downtown Houston, the Class A rental community has a mix of one-, two- and three-bedroom units averaging 980 square feet in size. Built in 2017, residential amenities at Greenhouse include a business center, fitness center, two swimming pools, a media room, a playground and 525 parking spaces.
In prepared remarks, the owner said it plans to update the property with new landscaping, a package locker system and technology improvements. The multifamily market in the Katy/Cinco Ranch area has consistently performed well and drawn renters, according to the firm.
Though Houston has experienced dual challenges with the coronavirus pandemic and a downturn in the city’s major oil and gas industry, multifamily development has stayed strong. According to a recent Yardi Matrix report, West Houston is one of the top 10 markets for multifamily construction in 2020. As of June, there were more than 19,000 units under construction in Houston, more than half of which were slated for completion in 2020. The bulk of the properties that have broken ground so far this year have been in the West Houston/Downtown submarket.
With the purchase of Greenhouse Apartments, 29th Street Capital now has a Houston portfolio of 2,555 units. The company has been active over the last several months. Earlier this year, 29th Street Capital purchased a 180-unit community in Tampa, Fla., and a 403-unit apartment community in Columbus, Ohio.