HOUSTON, TX – 37th Parallel Properties, a Richmond, Virginia-based multifamily real estate investment firm, announced the recent acquisition of Cashel Springs Apartments, their tenth multifamily acquisition in Houston. The Houston metro area has the second fastest growing population in the nation, with a growth rate over 3.5 times the national average. This acquisition is another milestone for 37th Parallel, bringing their total transactions in Houston to over $150 million.

Built in the 1980’s, the property features private balconies, walk in closets, a fitness center, clubhouse, detached garages, and two swimming pools.

Cashel Springs presents a unique opportunity for 37th Parallel to buy an under-improved, value-add asset in one of the fastest growing submarkets in the Houston area at a fantastic cost basis.

“We were able to buy a high-quality, income-producing asset at an estimated 45% discount to replacement cost and a 19% discount to recent comparable trades,” says Dan Chamberlain, Managing Partner and Chief Operating Officer. “The acquisition of Cashel Springs fits well within our strategy of investing in areas with strong demographics and favorable supply demand dynamics. We believe we can reposition the asset and add value through operational improvements and a focused renovation plot. We are excited to grow our presence in Houston and build asset value for our investors.”

The acquisition was funded with a blend of 1031 Exchange equity and new investor capital. The investment will benefit from long term, fixed-rate agency debt financing, arranged by Cutt Ableson of Berkadia Commercial Mortgage. 37th Parallel will do a multimillion-dollar capital improvement program, which will include upgrades to unit interiors, exterior, and common area amenities.

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EL SEGUNDO, CA – An investment group led by Ocean West Capital Partners, Tiger Alternative Investors, Korea Investment & Securities Co, and Landmark Properties has closed on the acquisition of two student housing portfolios which together consist of five student housing communities totaling nearly 1,600 beds. The five properties are located in three premier college markets: University of Michigan in Ann Arbor, University of Texas at Austin, and Florida State University in Tallahassee.

The first portfolio consists of two student housing communities adjacent to the University of Michigan (“UM”): Z Place (248 beds) and Z West (198 beds). The communities, constructed in 2009 and 2012, have been fully leased since construction and have premier locations within one block of the Diag and central campus. Ownership plans to further enhance the resident experience with capital improvements to the living units, common areas and amenities.

The second portfolio consists of three groundbreaking new student housing communities near the University of Texas at Austin (“UT Austin”) and Florida State University (“FSU”). The off-market transaction includes Nine @ West Campus (345 beds) and Nine @ Rio (347 beds) near UT Austin, and Nine @ Tallassee (438 beds) near FSU. Nine @ West Campus first opened for the 2018/19 academic year, while Nine @ Rio and Nine @ Tallahassee are currently in their first years of operation and are both 100% leased.

“Ocean West and our partners are excited to close on these transactions and are looking forward to finding additional investment opportunities in the student housing sector,” said Russ Allegrette, Principal of Ocean West Capital Partners. “As college enrollments continue to grow, there is a deep need for purpose-built student housing that developers have only just started to address in recent years. Ocean West will continue to target student housing acquisitions around top-tier public universities with strong records of academic excellence that offer real value to its students and graduates.”  

Phil Choi, Principal of Ocean West Capital Partners added, “We are ecstatic to join the communities at the University of Michigan, University of Texas at Austin, and Florida State University – all flagship, public universities in their respective states – and we look forward to improving the student experience at these prestigious institutions through our partnership with our best in class operating partner, Landmark Properties.” 

Jamie Lee, Senior Managing Director of KIS said, “KIS is excited about the long-term prospects for well-located student housing at world class universities. KIS will continue to increase investments in US real estate markets in various asset classes with reliable partners. It is fantastic to be working with Ocean West, Tiger and Landmark, and we look forward to working with them on future deals.”

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HOUSTON, TX – 29th Street Capital (29SC), a privately-held real estate operator, has bought 14220 at Park Row Apartments, a 1998 vintage, 318-unit multifamily community located in West Houston. 29SC plans to re-brand the property and implement a smart technology upgrade program. 

“We are excited to add this asset to our Houston portfolio,” said Doug Burt, Vice President of Acquisitions in Houston. “The property will benefit from continued employment growth in the energy sector and lack of new supply coming to the submarket.”

14220 at Park Row Apartments is located just off of I-10 along the Houston Energy Corridor. The corridor is now estimated to be the second-largest employment center in the Houston metropolitan area. It is home to over 300 companies, 107,000 employees and 27.1 million square feet of office space that is expected to reach 45.2 million square feet by 2030.

“The Energy Corridor took a hit a couple of years ago as the oil markets compressed,” Burt added. “With the market recovering and the area gaining those jobs back, we feel the submarket is poised for continued economic expansion.” 

This is the tenth acquisition in the Houston area in the past five years. The transaction closed September 24th. The sale price and seller were not told.

Formed in 2009, 29th Street Capital is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers. Over the past 12 months, 29th Street Capital has also bought 18 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S. 

29SC’s conventional multifamily portfolio currently consists of more than 8,700 units having bought over 15,800 units across its 15 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms. 

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