Texas multifamily properties are the thing among investors these days, apparently.
Virginia-based McCann Realty Partners bought two garden-style apartment communities in Houston late last year, adding 526 units to its Texas portfolio. The purchase price was not disclosed, as Texas is one of 12 US states where sales prices do not appear in public records. Both deals were funded with an institutional equity partner.
Discovery at West Road, formerly known as Watermarke, is the larger of the two Houston complexes. Built in 2005, it has 280 two- and three-story Class B apartments with attached garages on some units. The low-density, suburban-style community is at 9404 West Road in Northwest Houston. It has a resort-style swimming pool, outdoor grilling station, a fitness center and a community clubroom, all situated in a low-density setting on 15 acres. It’s adjacent to the Sam Houston Tollway in a mixed-use Harris County neighborhood. Listed rents there range from $1,060 to $1,654 per month.
The slightly smaller Haven at Eldridge is a three-story, 246-unit suburban-garden community, also built in 2015. It has one- to three-bedroom units with detached garages. Group amenities on its 11 acres are comparable to those at Discovery at West Road, although Haven at Eldridge is categorized as a Class A asset. The property is close to Eldridge Parkway in West Houston’s Energy Corridor business district. Its listed rents range from $1,110 to $1,990 per month.
McCann said it will invest an undisclosed amount of capital to upgrade exterior finishes, interiors and amenities in both communities. Atlanta-based McCann affiliate Pegasus Residential will manage the properties. McCann expanded its partnership with Pegasus in September.
The Houston properties, along with a Richmond, Virginia, multifamily community the company acquired around the same time, are “well located and in markets that show strong fundamentals for near-term and long-term growth,” said Matt Akin, president of McCann, in a press release.
Like many national realty companies, McCann is focusing on new properties and development opportunities in the Mid-Atlantic, Southeast and Texas.