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Residential
Houston

Three Pillars Capital to revamp Space City apartments

The investment firm is looking to make a solid return on another Class-B complex in Houston

Three Pillars Capital Group's Gautam Goyal with 6150 W Tidwell Rd
Three Pillars Capital Group's Gautam Goyal with 6150 W Tidwell Rd (Aspen Apartments, Getty, Three Pillars Capital Group)
By
Dec 30, 2022, 8:00 AM

Three Pillars Capital’s spending spree across Houston continues as the firm acquired another multifamily complex that could see a solid return.

The Houston-based private equity firm purchased the 209-unit Aspen Apartments from Rebus Capital, according to a media release. The price wasn’t disclosed. Located at 6160 West Tidwell Road, in the Brookhollow/Northwest Crossing district, the community is 12 miles from downtown Houston and the Greenway Plaza business district.

The property was valued at $12 million by the Harris County Appraisal District in 2022. The apartments include amenities such as a pool and dog park.
Demand for moderately priced rental housing is attracting Three Pillars Capital to properties such as this, and similar acquisitions could be on the horizon, with the expectation of risk-adjusted returns, Three Pillars Capital founder Gautam Goyal said in the release.

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“With inflationary pressures causing multifamily rents to soar, Houston has experienced exceptional growth in the Class B and C housing sector,” he said.
Three Pillars will begin renovating the apartments, originally built in the ’70s, with modern lighting, stainless-steel appliances, granite countertops and smart home tech packages.

Founded in 2017, the company specializes in Class B and C multifamily acquisitions, and currently has over $500 million worth of assets under management, according to its website.

While the Houston resi market cooled this past year, many developers are still bullish in the Space City. A number of investment firms in the Class A, B and C markets have been snatching up Houston’s multifamily stock in an attempt to establish a foothold in one of the country’s fastest growing markets.

Houston is continuing to grow as developers look to tear down aging buildings and replace them with high-end multifamily developments. Earlier this year, the Houston metro was ranked the No. 3 U.S. market when it comes to projected overall apartment demand. The top two are Austin and Dallas-Fort Worth, respectively.

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