MC Cos. Buys Houston Value-Add Portfolio
- Jul 13, 2021
MC Cos. has purchased two adjacent garden-style communities in Katy, Texas. Totaling 648 units, Enclave at Cypress Park and Paramount Apartments will be merged into one community and rebranded as The Place at Barker Cypress.
CBRE Capital Markets arranged the sale and secured acquisition financing on behalf of the buyer. MF1 Capital provided the loan, which carries a February 2026 maturity date, according to Harris County records.
MC Cos. purchased the portfolio through its Katy 2 Opportunity Fund LP. The assets traded in separate transactions, Yardi Matrix data shows. Starwood Capital Group sold Enclave at Cypress Park, while Allen Harrison Co. sold Paramount Apartments.
Unit mix, features
Enclave at Cypress Park encompasses 29 three-story buildings on 13.8 acres at 1822 Barker Cypress Road. The 384-unit community offers a mix of one- to three-bedroom floorplans with apartments ranging from 594 to 1,295 square feet. On-site amenities include a fitness center, a business center, a clubhouse, two laundry facilities and two swimming pools and spas.
Paramount Apartments is located at 1800 Barker Cypress Road on a 15.4-acre site. The property comprises 16 two- and three-story buildings. The 264 units feature a unit mix of one- to three-bedroom floorplans. Apartments range from 551 to 1,466 square feet; residents have access to a gym, a business center, a clubhouse, two swimming pools and laundry rooms.
Downtown Houston is approximately 22 miles east of the properties and can be reached through the nearby Interstate 10. Part of the Addicks area, the communities are next to Bear Creek Park and within 2 miles of Cullen Park and the Mayde Creek High School.
MC Cos.’ value-add strategy
Once the two communities become The Place at Barker Cypress, the new owner plans to continue the improvement program undertaken by the sellers. True to its value-add investment strategy, MC Cos. aims to reposition 328 units and renovate common areas.
Despite pandemic-induced volatility, investor appetite for the multifamily sector has remained strong. Interest in Class B value-add properties has been especially robust, with these communities continuing to attract a relatively financially stable renter cohort.
The CBRE Capital Markets team that facilitated the sale included Senior Vice Presidents Clint Duncan and Matt Phillips, who represented the sellers. Vice Chairman of Debt and Structured Finance Michael Thompson arranged the financing package.