Pagewood snags apartments in northwest Houston 

An up-and-coming firm that uses machine learning algorithms to identify potential acquisitions and development sites has made a splash in Houston’s multifamily market.

Pagewood, founded by Paul Coonrod in 2021, paid an undisclosed amount in November for the 152-unit Costa Mesa apartments, at 14150 Tomball Parkway, in northwest Houston, the Houston Business Journal reported. 

The sellers were Houston-based Life Changing Capital and Los Angeles-based Overland Capital Investments. 

The complex, constructed in 1979, comprises 12 two-story buildings with one- and two-bedroom floor plans, ranging from 614 to 1,044 square feet. At the time of purchase, Costa Mesa was 97 percent leased.

Houston-based Pagewood’s proprietary algorithm, known as the Lighthouse, identified the apartment complex as a lucrative investment, considering factors such as rent growth within a 2.5-mile radius and industrial development in the area. Pagewood’s system is like “the Moneyball of real estate,” the outlet said, drawing parallels to the data-driven approach to Major League Baseball depicted in the 2011 film starring Brad Pitt and Jonah Hill.

The complex is in Houston’s northwest submarket, an area experiencing robust industrial growth, especially along state Highway 249. The far northwest submarket has nearly 84 million square feet of industrial inventory and close to 1.5 million square feet under construction as of the fourth quarter of 2023, Pagewood’s Jackson Randolph said. This industrial growth translates to job creation and increased demand for housing, specifically workforce housing.

Pagewood classifies the complex as Class B but anticipates upgrades will elevate it to a Class B+. The company plans to renovate kitchens, flooring and lighting. Property management will be handled by Austin-based RPM Living, the outlet said. 

Pagewood has ambitious plans beyond its latest acquisition, aiming for at least one multifamily deal per quarter in Houston. The firm is also expanding into Dallas, Austin and San Antonio. In addition, Pagewood is targeting high-growth markets in Phoenix, Denver, Atlanta, Nashville, Charlotte and Raleigh. 

—Quinn Donoghue

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