HOUSTON – (Realty News Report) – JRK Property Holdings, a Los Angeles–based real estate investment firm, has launched a $1.5 billion acquisition initiative with the purchase of an apartment community in southeast Houston.
Houston is a strategic target for the company. JRK Property Holdings will continue to monitor the city—the nation’s fourth-largest—for multifamily investment opportunities, a company spokesman said.
“We have an ambitious goal of $1.5 billion in acquisitions in 2021,” said James Broyer, president of JRK’s investment division. “With close to $5 billion of buying power across our two existing multifamily funds, we are focused on identifying compelling opportunities across a wide range of property vintages in major U.S. markets.”
JRK recently closed on Carrington Park at Gulf Pointe, a 258-unit apartment community near Hobby Airport. The property sits on a 16-acre site at 11666 Gulf Pointe Drive, close to the intersection of the Gulf Freeway and Beltway 8.
The firm, which already owns roughly 1,000 units in Houston, said it acquired Carrington Park alongside Fieldpointe of St. Louis in St. Louis, Missouri.
Those two acquisitions were completed in separate transactions totaling nearly $81.5 million.
Houston Apartment Market
In 2020, investors paid an average of $136,344 per unit for Houston multifamily properties, according to Colliers International.
Multifamily rents in Houston softened during the pandemic, particularly at higher-end properties. Houston’s Class A rents fell 6.7 percent last year, while Class C and D rents declined by less than 1 percent, according to ApartmentData.com.
Multifamily Value-Add Funds
JRK, one of the largest multifamily landlords in the United States, acquired the properties through its newest value-add funds: the $800 million JRK Platform IV, which targets multifamily assets built after 1990, and the $330 million JRK MF Opportunities II, which focuses on assets built before 1990. These investment vehicles are backed by institutional investors, high-net-worth individuals and family offices.
Recent Portfolio Sale: 4,061 Units
This Houston acquisition follows JRK’s recent sale of a 4,061-unit multifamily portfolio made up of 12 communities ranging from 64 to 709 units across California, Colorado, Florida, Georgia, North Carolina, Ohio and Texas. Those properties had been part of JRK’s portfolio for about 10 years; 11 properties were sold to Blackstone and one to Davlyn Investments. The portfolio sale capped an active 2020 for JRK, which recorded nearly $2 billion in transaction volume.
JRK manages approximately $6 billion of investment capital dedicated to a portfolio that spans 23 states and includes more than 30,000 multifamily units, along with select hotel assets.
Feb. 2, 2021 Realty News Report Copyright 2021
File: Houston is Key Target in $1.5 Billion Investment Effort
Caption: Carrington Park in Houston. Courtesy JRK Property Holdings