Three Pillars Acquires 426-Unit Houston Asset

The transaction involved a $34 million loan from City Bank.

Chateaux Dijon. Image courtesy of GREA

Chateaux Dijon. Image courtesy of GREA

Three Pillars Capital Group has acquired Chateaux Dijon, a 426-unit multifamily community in Houston’s Galleria area. InvestRes was the seller, which picked up the property in 2018.

The deal involved a $34 million loan provided by City Bank, Yardi Matrix data shows. Global Real EstateAdvisors’ Founding Partners Abraham Graza and Jordon Emmott brokered the transaction.

Built in 1961, the community comprises 17 two-story buildings with one-, two-, three- and four-unit floorplans, ranging from 510 to 2,200 square feet. Apartments feature granite countertops and walk-in closets, along with fireplaces in select units. Resident amenities include a pet park, five swimming pools, a fitness center, grilling stations and eight laundry facilities. The new ownership plans to implement extensive renovations.

Located at 5331 Beverly Hill St., the 9-acre site is close to interstates 69 and 610, being situated roughly 10 miles west of downtown Houston. Galleria shopping mall, as well as numerous other retail and dining options, are within walking distance of the property.

According to a recent report, in 2022 Houston registered $9.7 billion in multifamily transactions, the second-best performing year in the past decade after the record-setting 2021, when deal volume reached $11.1 billion. However, the market has started to show signs of decelerating to a more sustainable pace, rents growing by 4.1 percent year-over-year through January, below the national figure of 5.5 percent, the same source shows.

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