HOUSTON – Valcap Group LLC has acquired 1,331 multifamily units in Houston’s Westchase District, CBRE announced.
The value-add portfolio comprises three communities: Westchase Estates, Westchase Grand and Westchase Preserve.
CBRE brokers Matt Phillips and Clint Duncan represented the sellers, Ascension Commercial Real Estate and Moriah Group. CBRE Executive Vice President Michael Thompson secured financing for the buyer.
The combined portfolio totals 993,848 square feet and reported an overall average occupancy of 91 percent. The properties are located at 2305 Hayes Road, 10881 Richmond Avenue, and 10615 Meadowglen Lane.
“This portfolio drew significant interest due to its value-add potential and the rebound of the apartment market in west Houston,” said Phillips.
CBRE Research’s most recent multifamily market report for Houston found that second-quarter net absorption nearly doubled the number of delivered units. Additionally, Moody’s Analytics projects Houston will add roughly 90,100 jobs this year, putting the metropolitan area on pace to absorb about 15,000 multifamily units.
“Investors’ enthusiasm is evident in the substantial capital flowing into renovations across many older apartment communities in the Westchase District over the past several years. Coupled with the district’s long-range plan—focused on beautification, mobility, safety and quality of life—these investments should continue to improve the live-work-play environment in this area,” Phillips added.
