Three Pillars Capital Grows Houston-Area Holdings
The purchase of Camino Del Sol Apartments is the eighth acquisition the firm has made since forming in late 2017.
Three Pillars Capital Group acquired Camino Del Sol Apartments, a 122-unit multifamily community in Pasadena, Texas, from GE 2507 LLC, an entity owned by Trey Stone and managed by Guardian Equity. This is the eighth asset purchased by Three Pillars, a Houston-based multifamily real estate investment firm that specializes in acquiring off-market Class B and C value-add properties, since its founding in late 2017.
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Located on 4.5 acres at 1120 Red Bluff Road, the Class C community is about 20 miles southeast of downtown Houston and has close proximity to Highway 225. Amenities at Camino Del Sol include a pet play area, high-speed Internet access and on-site parking. The asset is situated near numerous shopping centers and parks, including the Armand Bayou Nature Center.
The property, which was built in 1969, has units that are outdated and renting about 15 percent below market. Three Pillars plans to spend about $1.5 million on improvements. Interior renovations will include painting units and adding tile backsplashes, granite countertops, new light fixtures, brushed nickel faucets, black appliances and white painted cabinets in the kitchens. Bathrooms will also get new granite countertops, tile, brush nickel faucets, light fixtures and art basin sinks. Grey vinyl plank flooring will be added throughout the units along with new baseboards, crown molding and chair rail molding. Exterior improvements will include new signage and landscaping.
Greenline Management LLC, Three Pillars’ in-house management firm, will manage the property.
“We have another $50 million in acquisitions lined up that will take us to $100 million in total assets. The goal is to reach $100 million by the end of this year and $250 million by the end of 2020,” Josh Welch, founder & managing principal, told Multi-Housing News. Welch, who has expertise in securing and negotiating multifamily properties, arranged the latest deal with the selling entity and its representatives.
Three Pillars Growth
The Camino Del Sol acquisition comes one month after Three Pillars purchased Pine Lake Village Apartments, a 96-unit Class B community at 1325 Greens Parkway in Houston, from Pine Lake Village LLC. The 3.5-acre property includes a swimming pool, dog park, playground and covered parking.
Welch, who handled the sale for his firm, said Three Pillars plans to spend about $1million on renovations at the property, which currently has rents that are 20 to 25 percent below market. Renovations will be similar to those planned at Camino Del Sol, he said.
The firm’s current portfolio now totals seven assets, all in the Houston area. Other recent purchases include Allendale Village, 96 units, and Sycamore Gardens, 56 units, which were both acquired in December 2018. Three Pillars sold Casa Roble, which had 14 units, in October 2018. Acquired in September 2017, it was the firm’s first multifamily purchase.