With Houston’s booming economy expected to generate approximately 117,000 new jobs in 2013, possibly the most sizable gain since the 1980s, nearly all sectors of the local economy have been experiencing increased activity. The multifamily sector is no exception.
According to a recent Marcus & Millichap report, multifamily property sales in the Houston metro area rose 40 percent in 2012, exceeding the metro’s prior peak by a wide margin. First quarter data is incomplete due to a lag in reporting, but the running year-to-date count has already exceeded the total for the same period in 2012.
The 244-unit Armand Place is one of the multifamily properties to recently trade owners; the Clear Lake property has been purchased for an undisclosed amount, with Resource Real Estate Opportunity REIT, an entity sponsored by national real estate firm Resource Real Estate Inc., being the buyer.
Located in Clear Lake—one of the largest communities of Bay Area Houston—Armand Place consists of 20 buildings spread across 10 acres, and includes two swimming pools, a 24-hour fitness center, wood-burning fireplaces, parking and a shuttle service to the University of Houston-Clear Lake. Residents also benefit from a diverse local employment base that includes professionals in the aerospace, education, engineering, petrochemical and technology industries, and points of interest including the University of Houston-Clear Lake and the nearby Johnson Space Center.
Resource Real Estate Opportunity REIT plans to invest capital to improve individual units and common areas, upgrade the landscaping and establish a professional, on-site property management team.
Another Houston property to trade recently is the 168-unit Dover Pointe Apartments, acquired by a Texas partnership whose name was not disclosed. The property, located at 14445 Wallisville Road, commanded a list price of $5.4 million.
Marcus & Millichap Real Estate Investment Services represented the seller, which also wanted to remain unnamed but plans to enhance operations by repositioning the asset through modified renovations.