HOUSTON – (Dale King, Realty News Report) – Berkadia Institutional Solutions has arranged the sale and financing of The Heights Collection, a two-property portfolio totaling 646 Class A multifamily units in the Houston Heights neighborhood, to Florida-based Cardone Capital. The acquisition was led by Cardone Capital’s CEO, Grant Cardone, known to television audiences as the “Undercover Billionaire.”
Grant Cardone is a prominent real estate investor, author, business coach and entrepreneur who has built a multifamily portfolio of more than 3,800 apartment units across the United States and has completed transactions valued at over $500 million. He is also a media personality, serving as an executive producer and star of reality television programs and founding Grant Cardone TV, an online entrepreneurial and business network.
Cardone Capital, based in Aventura, Florida, acquired Heights Waterworks and 15th Street Flats in Houston with acquisition financing arranged by Berkadia. Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins of Berkadia Boca Raton, together with Managing Director Brad Williamson of Berkadia Miami, secured the purchase financing for Cardone Capital.
The Houston Heights is one of the city’s most iconic and walkable neighborhoods, featuring an affluent housing market and a variety of local amenities. Its proximity to Central Houston makes it conveniently close to major employment centers. Residents in the Heights can typically walk to multiple restaurants, bars and coffee shops within just a few minutes. The neighborhood is also Houston’s largest intact historic district, known for its boutiques, antique shops, restaurants, arts markets and community festivals.
The seller was Alliance Residential, represented by Berkadia Houston’s Senior Managing Director Chris Curry and Todd Marix, along with Managing Directors Jeffrey Skipworth, Joey Rippel and Chris Young.
“When we were designing these two properties, our goal was to combine modern amenities with walkable locations,” said Kelcie Berry, director of asset management at Alliance Residential Company. “The result is two irreplaceable assets in a high-growth corridor with ample room for rent growth. We are proud of the final product and wish the Cardone team well on the next steps.”
Financing was originated by Cincinnati-based Eagle Realty Group on behalf of Western & Southern Financial Group. The loan carries a six-year term with three years of interest-only payments at a fixed rate, followed by a floating rate period.
“The Heights Collection offered Cardone Capital a unique opportunity to add two brand-new multifamily assets, totaling 646 units and acquired below replacement cost, to their existing Houston holdings,” said Curry. “Because these properties stand apart from their peers in location and quality, the new ownership has an opportunity to create value in a market that is trending upward as renters return to the urban core.”
“This is the finest and newest asset in one of the premier submarkets in Houston,” Curry added. “Combined with Cardone Capital’s track record and reputation, we saw strong demand from institutional debt markets, which allowed us to choose a portfolio lender to collaborate with our team on a loan structure that aligns with Cardone’s investment strategy to scale to 10,000 units.”
15th Street Flats, located at 1414 North Shepherd Drive, is an eight-story, 337-unit building completed in 2021. It offers one- and two-bedroom floor plans ranging from 638 to 1,273 square feet. Units feature wood-plank style flooring, 10-foot ceilings and white Carrera-style quartz countertops. Community amenities include the only rooftop pool in the Heights, social and business lounges, a private dining room, outdoor living spaces with alfresco dining, an outdoor kitchen with a pizza oven, landscaped grounds, direct-access elevators and an elegant courtyard.
Heights Waterworks, located at 515 West 20th Street, is an eight-story property completed in 2020 with 309 one- and two-bedroom units ranging from 600 to 1,265 square feet. Apartment finishes include stainless steel appliances with gas ranges, white and gray Shaker-style cabinetry and LED lighting.
In addition to direct property ownership, Cardone operates a crowdfunding platform that has raised more than $650 million, enabling a broad base of investors to participate in institutional-quality real estate through his social media channels and bypassing traditional family-office capital sources.
Berkadia is a joint venture between Berkshire Hathaway and Jefferies Financial Group.
Oct. 5, 2021 Realty News Report Copyright 2021
For more about Texas real estate, check out the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available on Amazon
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File: ‘Undercover Billionaire’ Snags Apartments in Houston Heights
Image: Courtesy Berkadia