DLP Capital Buys up Yet Another Houston Apartment Complex

DLP Capital’s latest apartment buy will push its Houston property portfolio to $480 million.

The privately held Florida-based real estate investment firm has acquired all eight of its Greater Houston properties over the past 12 months as Houston’s multifamily sector continues to boom.

The company’s acquisition strategy focuses on “apartment properties that offer affordability to America’s working families” — which can be a tall order in Houston these days.

Most recently, DLP teamed up with Dallas-based Elevate Commercial Investment Group to acquire the Domain at Morgan’s Landing, a 350-unit multifamily complex in the southeast Houston suburb of La Porte. Elevate buys value-added multifamily assets that can be “repositioned.”

DLP also has stakes in the Dallas-Fort Worth market and plays in the build-to-rent space. In early 2022, the company announced it was building 1,200 rental homes in South Fort Worth.

“We are bullish on suburban multifamily in Texas in general, as vacancy rates compress to near record lows—but our sweet spot is the affordable segment where we can really make an impact on the lives of our residents,” said DLP CEO Don Wenner.

The appraised market value of the Domain at Morgan’s Landing jumped to $49 million in 2022 from $27.6 million in 2021, according to Harris County Appraisal District records.

The apartment complex’s previous owner was Houston-based CityStreet Residential.

CityStreet specializes in the acquisition and development of multifamily and RV resort real estate properties and is headed by Rick Craig, a former executive at Trammell Crow, Gables Residential Trust and the Finger Companies.

Located at 3300 Bay Area Boulevard, the 18-acre Domain at Morgan’s Landing is near the Port of Houston, NASA’s Johnson Space Center and Houston’s Hobby Airport. The apartment complex, completed in 2019, is made up of 13 three-story buildings with one- to three-bedroom units. Notable amenities include a movie screening room and an outdoor beer garden with firepit and grilling stations.

The financial terms of the transaction were not disclosed.