HOUSTON – (Realty News Report) – Privately held real estate investment firm 29th Street Capital (29SC) has acquired Lincoln Medical Center Apartments. This purchase marks the firm’s 13th multifamily acquisition in the Houston metro area, bringing its local holdings to nearly 4,000 units.
Built in 1990, Lincoln Medical Center Apartments is a Class B property with 224 units located in Houston’s Medical Center/Braes Bayou submarket. 29SC plans to rebrand the community as Helix at Med Center and will update the leasing office and on-site amenities to enhance resident experience.
Haven Residential, 29SC’s in-house property management group, will manage leasing and day-to-day operations at the property.
“We see this as a rare opportunity to acquire an institutional-quality asset that is currently undervalued in a high-growth Houston submarket,” said Doug Burt, 29SC’s Vice President of Acquisitions based in Houston. “The Texas Medical Center is undergoing significant expansion while new apartment supply in the area is expected to remain limited in the near term.”
Lincoln Medical Center Apartments sits at 7200 Almeda Road, roughly five miles south of downtown Houston. The site is located south of Braes Bayou on the east side of the Medical Center, near the historic Nabisco factory site that was redeveloped by the Texas Medical Center.
“There is more than $3 billion in life-sciences oriented development within a three-mile radius of Lincoln Medical Center,” Burt added. He noted that TMC3, a $1.5 billion life sciences and research development, is scheduled for delivery in 2022 and is expected to generate approximately 26,000 high-quality jobs in the area.
The Texas Medical Center spans 1,345 acres and employs more than 100,000 people. The campus includes numerous medical schools, research institutions and leading hospitals, creating a strong, steady employment base for nearby housing.
Nearby developments further reinforce local demand: a partnership between Hines and 2ML Real Estate Investments has broken ground on Levit Green, a 53-acre life-sciences focused mixed-use project on the former Grocer’s Supply site, located about one mile east of Lincoln Medical Center Apartments.
“The employment growth, coupled with ongoing population increases, should support long-term demand for this asset,” Burt said.
Over the past year, 29SC has acquired 17 conventional multifamily properties, totaling more than 4,000 units across the United States, and continues to pursue additional acquisitions.
Founded in 2009, 29th Street Capital is a privately held real estate investment firm specializing in value-add strategies and multifamily development. The firm’s portfolio currently includes more than 15,000 units, having acquired over 25,000 units through its 16 offices nationwide. Typical investments range from $25 million to $200 million in total capital.
May 28, 2021 Realty News Report. Copyright 2021.
Image: Courtesy of 29th Street Capital
File: Medical Center Apartments Acquired
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