Houston, Texas (Oct. 29, 2018) – 29th Street Capital (29SC), a privately-held real estate operator, has acquired Cali Sommerall Apartments, a 368-unit multifamily community located in the Copperfield/Bear Creek submarket of Houston. 29SC plans to invest over $2 million in capital improvements. Apartments will receive new granite countertops, a modern paint scheme, hardware and fixtures. New amenities will include a package locker delivery system, a dog park, fitness equipment and grilling stations. Renovations are planned for the clubhouse, leasing office, pool and surrounding areas. The new owners will also rebrand the community with a new name, logo and signs.
“We have a solid portfolio in Houston and feel the improving local economy justifies further expansion,” said Doug Burt, Vice President of Acquisitions in Houston. “Cali Sommerall is in a strong school district with projected high population growth.”
After experiencing some economic softness in 2016 and 2017, Houston had a surge of job and population growth as a result of stabilizing oil prices and a continued pro-business environment. CBRE Research ranks Houston second in terms of population growth among U.S metro areas, and a top five metro market for year-over-year effective rent growth as of the second quarter of 2018.
“With oil prices stabilizing, Houston is feeling a positive boost in the economy,” Burt added. “Houston continues to add jobs at a high rate. With a slowdown in the new supply pipeline for apartments, we feel Cali Sommerall will be positioned to offer high quality, yet affordably-priced housing in a high growth submarket.”
Cali Sommerall Apartments, which is approximately 23 miles northwest of downtown Houston, is easily accessible via U.S. 290. The property is conveniently located near retailers including Walmart, The Home Depot, Target, Marshalls, Kroger, Bath & Body Works, CVS, Starbucks and others. In addition, the property is approximately seven miles north of the Houston Energy Corridor via Interstate 6.
The transaction closed October 29. The sale price and seller was not disclosed.
Formed in 2009, 29th Street Capital is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers. Over the past 12 months 29th Street Capital has also acquired 16 conventional multifamily assets and continues to actively pursue additional opportunities throughout the U.S.
29SC’s conventional multifamily portfolio currently consists of more than 8,100 units having acquired over 14,000 units across its 14 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms.