NexPoint Residential Expands Houston Presence by 924 Units
- Jan 05, 2017
Houston—NexPoint Residential Trust Inc. through its operating partnership NexPoint Residential Trust Operating Partnership LP announced the acquisition of the H2 Portfolio in Houston for approximately $108 million.
The two properties are Old Farm Apartment Homes, a 734-unit residential community located at 2500 Old Farm Road built in 1998 and Stone Creek at Old Farm Apartments, a 190-unit apartment property built in 1999 at 8585 Woodway Drive. The assets are situated on 35.1 acres of contiguous land surrounded by single-family neighborhoods and three regional employment centers (Uptown, Westchase and Medical City).
The H2 Portfolio deal was structured as a reverse 1031 exchange to facilitate NXRT’s strategy to recycle the capital from dispositions of assets from non-core markets. The company funded the purchase price with borrowings of nearly $108 under its credit facilities with KeyBank National Association and Freddie Mac. NXRT announced it expanded its debt facility with Freddie Mac to $300 million under the previously disclosed terms of the credit agreement. Once the reverse 1031 exchanges are completed, management expects the portfolio’s loan-to-value ratio to stabilize at around 55 percent.
The H2 Portfolio marks the company’s first acquisition in Houston since 2014 and expands NXRT’s footprint in the market to 1,164 units. The company has now more than 12,900 units across 10 markets in the southeastern and southwestern U.S.
Images courtesy of Yardi Matrix