ClearWorth Deepens Houston Footprint With Portfolio Buy

The company acquired two communities, totaling 549 units, in the Clear Lake submarket and plans to renovate both properties extensively.

ClearWorth Capital LLC expanded its portfolio through the acquisition of The Hamptons and Las Brisas on El Dorado, two class C+ communities, totaling 549 units, located in the Clear Lake submarket in southeast Houston. The deal marks the company’s second and third Houston acquisition in the past 10 months.

HFF Houston represented the undisclosed seller. Nathan Stone with the Dallas office of Northmarq Capital arranged acquisition financing for both assets. NOIPM (NOI Property Management LLC) will oversee property management of both communities.

Built in 1978, the 31-building, 347-unit The Hamptons is located on nearly 14 acres at 16202 El Camino Real. The unit mix consists of one- to three-bedroom units averaging 1,032 square feet. Common area amenities include a fitness center, playground, swimming pool, two laundry facilities and parking for 452 vehicles. Units feature washer/dryer hookups in all units and private balconies/patios.

Built in 1979, Las Brisas on El Dorado comprises 23 buildings on 8 acres at 707 El Dorado Blvd. The unit mix offers one- to three-bedroom units averaging 892 square feet. Community amenities include a fitness center, clubhouse, playground, swimming pool, laundry facilities and parking with 330 spaces. Select units feature washer/dryer connections and private balconies/patios.

Plans for a facelift

The new owner will invest in extensive renovations and amenity upgrades, adding new flooring, appliances, cabinets, countertops, window treatments, fixtures and kitchen backsplashes, as well as replacing patio fence enclosures, exterior paint, façade treatments and landscaping. In addition, the improvement plan will address deferred maintenance.

“We remain optimistic in the Class C to B value-add multifamily space in Houston, especially in historically strong submarkets such as Clear Lake,” Jim Marfuggi, CEO of NOIPM, said in a prepared statement. “The attractive going-in basis provides strong cash yields upon acquisition, with robust returns to our investors post-renovation. These assets have good floorplans, footprints, visibility and location, but their physical attributes have fallen behind their nearby peers, which is largely contributing to their current performance. We believe these properties are primed for a full repositioning program through our targeted capital improvements and through the execution of strong management practices.”

Images courtesy of Yardi Matrix & property websites