Three value-add multifamily communities in Houston’s Westchase district are under new ownership. The Valcap Group purchased the portfolio of 1,331 units from Ascension Commercial Real Estate and Moriah Group.
The communities, Westchase Estates, Westchase Grand and Westchase Preserve, were collectively 91 percent occupied at the time of sale. The properties are located at 2305 Hayes Road, 10881 Richmond Ave. and 10615 Meadowglen Lane, respectively. "There was a tremendous amount of interest in this portfolio because of the value-add potential and the recovery story of the apartment market in west Houston," CBRE senior vice president Matt Phillips, part of CBRE's Houston multifamily investment properties team, which represented the seller, said.
For the first time in two years, Houston’s vacancy rate has dipped into single digits, at 9.9 percent, according to CoStar analytics. In fact, Houston currently ranks fourth nationally in multifamily net absorption over the last four quarters at 11,800 units. Houston’s pipeline has slowed dramatically in the first half of 2018 with demand outpacing supply by about 3,300 units.
Moody’s Analytics is forecasting Houston to add roughly 90,100 jobs this year, which puts the metropolitan area on track to absorb approximately 15,000 multifamily units.
Matt Phillips and Clint Duncan, both senior vice presidents with CBRE in Houston, represented the seller. CBRE’s Michael Thompson, executive vice president, arranged financing on behalf on the buyer.
