$1.5 Billion Investment Blitz: Houston is Key Target

In Houston, JRK Property Holdings, a Los Angeles-based real estate investment firm, is kicking off its $1.5 billion purchase program with the purchase of an apartment complex in southeast Houston.

Houston is a key investment target for the company and JRK Property Holdings will be monitoring Houston, the nation’s fourth largest city, for multifamily investment opportunities, a company spokesman said.

“We have an ambitious goal of $1.5B billion in acquisitions in 2021” said President of JRK’s investment division, James Broyer. “With close to $5B of buying power from our two existing multifamily funds, our focus is finding compelling opportunities across all vintages of properties in the majority of U.S. markets.”

JRK Property Holdings recently closed on the purchase of Carrington Park at Gulf Pointe, a 258-unit apartment project near Hobby Airport. It sits on a 16-acre site at 11666 Gulf Pointe Drive, near the intersection of the Gulf Freeway and Beltway 8.

The investment firm, which already owns about 1,000 units in Houston, reported that it just purchased Carrington Park in Houston, along with the Fieldpointe of St. Louis in St. Louis, Mo.

The two communities were purchased in separate transactions valued at nearly $81.5 million.

Houston Apartment Data

In 2020, investors paid an average price of $136,344 per unit for Houston multifamily properties, as stated by Colliers International.

Houston multifamily rents have been softer during the pandemic, particularly in the upper-end apartment projects. Houston’s Class A rents were down 6.7 percent last year, while Class C and D rents were down less than 1 percent, as stated by ApartmentData.com.

Multifamily Value-Add Funds

JRK, one of the largest multifamily landlords in the United States, purchased the properties, through its newest multifamily value-add funds: $800 million JRK Platform IV, which targets multifamily investments built after 1990; and its $330 million JRK MF Opportunities II, which targets assets built before 1990. The investment vehicles are funded with capital from institutional investors, high-net worth individuals and family offices.

Sold: 4,061 Units

The Houston deal follows JRK’s completion of its 4,061-unit multifamily portfolio sale comprised of 12 communities ranging in size from 64 to 709 units located across California, Colorado, Florida, Georgia, North Carolina, Ohio and Texas. The properties have been part of JRK’s portfolio for the past 10 years with 11 of the properties sold to Blackstone and 1 sold to Davlyn Investments. The portfolio sale capped off an active 2020 for JRK with nearly $2 billion in transaction volume.

JRK’s $6 billion of investment capital is dedicated to a portfolio spanning 23 states with over 30,000 multifamily units, and some hotels.