GAIA Real Estate picked up an investment in the Rice Military/Washington Corridor area.
The New York-based firm bought the 372-unit Virage on Memorial at 100 Detering Street, according to a news release. The seller was Dallas-based Crow Holdings, deed records show. The price wasn’t disclosed, but the property’s taxable value is $83 million ($223,000 per unit) , up $1 million from last year.
The six-story building, developed by Greystar in 2014, advertises rents of $1,400 to $3,400 for one to three bedrooms. Attorneys Moty Ben Yona of Smith, Gambrell & Russell LLP, and Stuart Lautin of Higier Allen & Lautin P.C. represented GAIA in the transaction.
It is GAIA’s third Class A multifamily purchase in the Sun Belt since last year, when it bought the 308-unit 101 Depot, at 101 South Lowry Street in the Nashville suburb of Smyrna, and the 269-unit Avila apartments at 2880 Avila Cross Circle in the Orlando suburb Oviedo.
The three assets are valued at $250 million, according to the news release. That would be almost $263,500 per unit, based on an average across the three markets.
GAIA CEO Danny Fishman hinted in the release that the assets were purchased at “a significant discount to 2021-2022 values.”
“Sun Belt markets possess long-term structural drivers of demand. We believe that the oversupply trend is abating, and our plan is to acquire assets ahead of projected growth.”
Houston’s Harris County has one of the fastest-growing populations in the nation, according to the U.S. Census Bureau. The Houston metro area is expected to add 394,000 people by 2029.
Residential rents are on the upswing, rising 1.5 percent in the third quarter, according to Newmark. Class A rents increased 1.7 percent in the same period, due to population and job growth coupled with relative undersupply of new construction. Under 14,000 units were being built in the third quarter, far fewer than any other Texas metro.
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“We believe that the Houston multifamily market possesses one of the most compelling supply-demand stories in the U.S. today,” GAIA partner and managing director of acquisitions David Kusy said in the release.
The firm has been invested since 2011 in Houston’s multifamily market, where it owns 6,400 units across 21 properties.