Tara Capital Invests $145M in Houston Multifamily Buy, Renovation

Tara Capital has secured a $55.5 million loan to revamp its largest multifamily property.

Miami-based BridgeInvest provided the loan, earmarked for renovation of the 810-unit Park on Voss, at 2424 South Voss Road in Houston’s Galleria/Uptown submarket. The loan comes to almost $69,000 per unit.

Tara, a local firm, bought the property for $63 million from Barvin Group last week. The sale price was $78,000 per unit. The renovation is expected to cost $82.1 million, a little over $101,000 per unit.

Barvin acquired the 650,000-square-foot property in 2013 and remodeled it two years later, according to the Harris Central Appraisal District.

It was recently appraised for property taxes at $75 million, down from $82 million last year, a nearly 10 percent drop in assessed value.

The loan is expected to finance the renovation of 610 units and upgrade the remaining 200, according to a news release.

New appliances, HVAC systems, repairs and exterior enhancements are planned, in an effort to command market rent, which averages a little under $1,600 a month in Uptown Houston, according to RentCafe.

About 1,300 households took Class A multifamily leases in the first quarter, indicating high demand for newer properties in Greater Houston, according to Transwestern. The region’s overall multifamily occupancy dipped to 88 percent. Class B and C properties struggled to keep up with flight-to-quality, seeing more move-outs than move-ins, resulting in negative absorption of 2,034 units.

Ultimately, Tara plans to replace the BridgeInvest loan with long-term debt and keep the property competitive in the market. There are plans to rebrand it as Star Voss, according to the firm’s website.

Prior to this purchase, Tara Capital owned and managed over $100 million worth of Class B and C apartment complexes across Greater Houston. It was founded in 2017. Its holdings include the 330-unit Star Westheimer, at 7900 Locke Lee Lane; the 220-unit Star Beltway 8, at 10411 South Drive; and 176-unit Star Villa Ana, at 10101 West Sam Houston Parkway South.