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In Contrarian Play, Multifamily Investors Still Taking a Chance on Houston

Per Unit Prices Still on an Uptick and Deal Volume Remains High


Despite the collapse in oil pricing, multifamily investors have not shied away from acquiring Houston apartment projects.

Although last year’s deal volume of about $3 billion was $500 million less than in 2014, it was still $500 million higher than in 2013, according to CoStar data.

The average sale price per unit for Houston multifamily property also continued to climb from about $50,000/unit at the start of 2013 to about $110,000/unit at the end of 2015.

And investors appear to be targeting the energy-dominant market again this year. Advenir acquired the former Broadstone Stone Park Apartments, a 480-unit apartment community at 6160 East Sam Houston Pkwy N in Houston. The sale price was not disclosed.

The sale marked Advenir's third acquisition in 2016 and it plans to acquire in excess of $350 million by year-end. Advenir said it has acquired over 1,100 apartment units in the Houston MSA over the last nine months.

The firm plans to invest approximately $4 million to renovate and modernize units and common areas at the newly renamed Advenir at Stone Park.

"The Houston region, although currently under a microscope, is a market we will continue to grow our portfolio in and believe we are doing so at a significant discount to purchase prices less than nine months ago," said Todd Linden, chief acquisition officer of Miami-based Advenir. "We are very strategic in our submarket and property type selection within the Houston MSA and believe that our investors we will be rewarded with significant appreciation as oil prices normalize over the next few years."

Last week, Fort Worth-based Panther FW Investments, in partnership with Commerce Capital Partners of San Antonio, purchased the 536-unit Wilshire Place Apartments in Houston for an undisclosed price. This acquisition marks Panther’s fourth property in Houston, expanding its presence to over 1700 units.

Last month, BRT Realty Trust through a joint venture in which it has a 75% interest, acquired the Retreat at Cinco Ranch, a 268-unit complex in Katy, TX, for $40.3 million, inclusive of $30.8 million of mortgage debt. The mortgage matures in 2026 and bears an interest rate of 4.44%.

And also last month, a joint venture acquired the 225-unit Haven at Westgreen in Katy for an undisclosed price. HFF secured acquisition financing for the newly-built, 225-unit apartment community located at 510 Westgreen Blvd.

HFF worked on behalf of the buyer, a joint venture between co-general partners CAF Capital Partners, The Rainier Cos. both of Dallas, and an unnamed party, to place the three-year, floating-rate bridge loan with PCCP LLC.

Willy Walker, chairman and CEO of multifamily lender Walker & Dunlop, noted this month is his company’s quarterly earnings conference call, that, from a lending standpoint, Houston’s multifamily fundamentals are still strong.

“Multifamily fundamentals appear extremely strong right now at this time in the cycle,” Walker said. “And should we have a slowing in growth in the U.S. economy, many of those people that might aspire to own a single-family home are unlikely to be able to get to that and will likely be renters for some time to come.”

Other major multifamily investors are scouring the market as well. Brookfield Property Partners, which owns about 5,300 multifamily units in Texas, is one.

Brian Kingston, CEO of Brookfield Property Partners, said he considers the company to be a value-based investor, which he said often means being contrarian.

"Given that we do have a fairly large presence in places like Calgary and Houston, we feel like we’ve got a pretty good finger on the pulse of what’s happening on the ground there,” Kingston told investors this month. “I don’t think there’s anything imminent that’s noteworthy to report at the moment, but we’re certainly spending time in those markets. And there could be some interesting opportunities given what’s happening.”

By Mark Heschmeyer
February 22, 2016


 


PROPERTY DETAILS
 Units: 345
 Year Built: 1972
 Acquired: January, 2016
 Financing: Freddie Mac; 7 year cap arm; 3 years of interest only
 Average Unit: 724 Square Feet
 Year 1 Cash Yield: 13.29%

Advenir, a premier provider of multi-family real estate investment and management
services, has acquired Villas at Parker, a 345 apartment community located in Denver,
CO. Advenir will re brand the property as Advenir at Cherry Creek North, and will
implement a significant capital improvement program to achieve greater rental premiums.

----------------------------------------------------------------------------------------------------------------------------------------------------------
Founded in 1996, Advenir, Inc. is a Real Estate Investment Company headquartered in Aventura, Florida
(Miami-Dade). Advenir acquires and operates multi-family rental communities throughout the United States, on
behalf of high net worth and institutional investors. Since inception, Advenir has owned and operated more than
16,000 apartment units valued over $2.0 Billion. Our current portfolio consists of 8,400 apartment units valued at
more than $1.2 Billion. In addition to Advenir, Inc., Advenir has a Property Management Company with 255
employees and regional offices in Florida, Texas, and Colorado; and a Construction Management Company focused
on multifamily development and rehabilitation.


Advenir—Advenir acquired Advenir at Cherry Creek South (formerly known as Cypress Point), a 292-unit apartment community in Denver, for $42 million. Built in 1979, the property is on 11.3 acres and features 15 buildings.

Common amenities include barbecue and dog areas, pool and hot tub, a clubhouse and a fitness center. Over the past four years, the previous ownership invested more than $2 million on the property’s exterior and common areas, as well as interior unit improvements.

The buyer will further enhance the property by infusing an additional $3 million of capital improvements. “Advenir at Cherry Creek South provided us with an ideal value-add opportunity,” said Todd Linden, chief acquisition officer of Advenir.

Denver remains a strong apartment market, though the heat has turned down a bit recently. Occupancies, for instance, were at 94.5 percent as of the end of 2015, according to Axiometrics, compared with about 96 percent six months earlier, the result of new product coming on the market.

Advenir has acquired more than 4,000 apartment units in the Denver area since late 2011 when it entered the market. Also, the deal marks the firm’s second acquisition this year and it plans to acquire in excess of $350 million nationwide by the end of 2016.


February 4th, 2016

Source: Dees Stribling

https://www.multihousingnews.com/post/adnvenir-acquires-denver-value-add-apartments-for-42m/

 


PROPERTY DETAILS
• Units: 345
• Year Built: 1972
• Acquired: January, 2016
• Financing: Freddie Mac; 7 year cap arm; 3 years of interest only
• Average Unit: 724 Square Feet
• Year 1 Cash Yield: 13.29%
Advenir, a premier provider of multi-family real estate investment and management
services, has acquired Villas at Parker, a 345 apartment community located in Denver,
CO. Advenir will re brand the property as Advenir at Cherry Creek North, and will
implement a significant capital improvement program to achieve greater rental premiums.

----------------------------------------------------------------------------------------------------------------------------------------------------------
Founded in 1996, Advenir, Inc. is a Real Estate Investment Company headquartered in Aventura, Florida
(Miami-Dade). Advenir acquires and operates multi-family rental communities throughout the United States, on
behalf of high net worth and institutional investors. Since inception, Advenir has owned and operated more than
16,000 apartment units valued over $2.0 Billion. Our current portfolio consists of 8,400 apartment units valued at
more than $1.2 Billion. In addition to Advenir, Inc., Advenir has a Property Management Company with 255
employees and regional offices in Florida, Texas, and Colorado; and a Construction Management Company focused
on multifamily development and rehabilitation.
Recent Transaction 
351-unit asset in Aurora, CO near Fitzsimons and Buckley 
Del'Arte Lofts & Flats | Just Sold 

ARA NEWMARK EXECUTES SALE OF NEWLY                              
REMODELED PROPERTY IN AURORA, CO                                   
                                                                                                                       
Terrance Hunt explained, "This asset was just                                          
completely renovated and released in two years, 
which demonstrates the strong renter demand for                                        
upgraded units near Fitzsimons and Buckley." 
                                                                                                                       
                                                                                                                      
Transaction Details     
Address: 151 South Joliet Circle, Aurora, CO 80012 

Units: 351

YOC: 1986             

Price: $52,250,000                                                                                            

Price/Unit: $148,860

Advenir purchases Sunset Creek

Another apartment complex in Colorado Springs has changed hands, according to news from ARA Newmark, a broker firm for multi-family real estate transactions.

Advenir, a Miami-based, full-service real estate company that owns apartment complexes in Colorado, Florida and Texas, purchased Sunset Creek for $37.2 million, according to the El Paso County tax assessor’s office.

Advenir owns BriarGlen apartment complex on Chapel Hills Road and Spring Canyon apartments on 30th Street.  They renamed Sunset Creek to Advenir at The Village.

Seagate Sunset Associates owned the 310-unit multifamily community, which was built between 1966 and 1969. Seagate owns properties throughout the western United States and has offices in Denver and northern California. It purchased the apartment complex for $20.4 million in 2012 and invested more than $2 million to renovate the property.

Sunset Creek is located at 5400 N. Nevada Ave., near UCCS and the University Village Colorado shopping center. As Seagate was selling the buildings, Newmark executive Kevin McKenna said the property received national offers — largely due to its location.

“The University of Colorado – Colorado Springs, the fastest growing campus in Colorado, is just across the street and the busiest retail center in town, which includes Costco and Trader Joe’s, is next door,” he said. “A new hospital is under construction to the north and the property backs up to the Santa Fe Trail system.”

But that’s not all, he said.

“Sunset Creek sits on a massive 27 acre lot,” he said. “It’s one of the largest multihousing sites in Colorado Springs, making it one of the least dense communities in the market at only 11 units per acre.


By Amy Gillentine
Posted on
http://www.csbj.com/2015/09/25/advenir-purchases-sunset-creek/

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