After getting his feet wet in the residential realm in 2020, Nick Dhanani is now fully immersed in multifamily.
His firm, Dhanani Private Equity Group, has over 3,000 multifamily units in the pipeline, and the company has quickly established a brand, known as “Territory,” in the process of its residential pursuits, the Houston Business Journal reported.
The local company opened the 288-unit Territory at Greenhouse three years ago as its first major residential project. In business since the 1980s, Dhanani’s real estate investments were geared toward retail and convenience stores, but now multifamily makes up the bulk of its portfolio.
But since embarking on the Greenhouse venture, Dhanani has seven additional apartments that are under construction or in the planning, design or permitting phase, the outlet said. The developer also has a senior condo development and a build-for-rent community in the works.
“All the young millennials, they don’t like to own a big home with a big yard where they have to keep up with everything,” Dhanani told the outlet. “They like to pack and go, so they are more motivated toward renting an apartment and not having the responsibility of ownership.”
Most of the developments under the Territory brand, which are all in the Houston area, consist of nine three-level buildings. Amenities for each are similar, featuring a swimming pool, outdoor dining and barbecue areas, dog park, pet washing station, fitness center, car wash area and coffee lounge, the outlet said.
Dhanani has shifted to multifamily because of the high demand for housing, as new residents continue to flock to the area. Rising rent has caused apartment occupancy rates to sink, but a supply shortage has contributed to soaring costs.
By adding a substantial number of new units, the market could level out, and rental rates may drop, similar to Austin.
—Quinn Donoghue
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