Fat Property Buys Midtown Multifamily, Market briefs

In Houston, Fat Property, a multifamily firm led by Cody Lutsch, purchased 131 units in the 200 block of West Alabama in the Midtown district.

The seller, an affiliate of Realty Center Management of Culver City, Calif, was represented by the Berkadia Houston Investment Sales team.

Built in 1960 and 1965 respectively, 220 & 230 West Alabama consists of two multifamily communities offering studio, one-, and two-bedroom apartment homes.

The Berkadia Houston Investment Sales team was led by Senior Director Kyle Whitney and included Senior Managing Director Chris Curry, Managing Directors Jeffrey Skipworth, Chris Young, and Joey Rippel, and Associate Director Tucker Fama.

Fat Property is one of Houston’s largest independent apartment buyers and among the largest and most active within the 610 Loop, with more than 2,000 units, nearly all within the Loop.

“This off-market trade of two well-located, 1960s-vintage assets in Midtown underscores the depth of buyer demand for Central Houston locations, even for smaller properties,” said Kyle Whitney. “It also reflects a broader return of selective capital to Houston multifamily, where investors see an opportunity to acquire apartments at a basis and yield profile that remains compelling relative to other major markets.”

In Last year, Camden Property Trust, a Houston, based multifamily REIT led by Ric Campo, sold the 337-unit Camden Midtown located at 2303 Louisiana Street, a couple of blocks south of the Pierce Elevated near Hadley Street. The buyer was Denver-based Bow River Capital.

In other transaction activity, Berkadia is working to sell Aspire Post Oak, a 39-story apartment tower at the intersection of Post Oak Boulevard and San Felipe Street in Uptown. Developed by Dinerstein, the 383-unit tower opened in 2021.

Berkadia is a commercial real estate joint venture of Berkshire Hathaway and Jefferies Financial Group.