Class B properties at the top of the list for some area investors
Houston-based Nitya Capital has expanded its portfolio with the purchase of the Broadmead Apartments near NRG Park.
Built in 1979, the project’s 235 units are spread across multiple two-story buildings on several acres at 2801 Broadmead at South Main.
“We’re big believers in the Houston market,” said Swapnil Agarwal, CEO of Nitya Capital.
Since being founded in 2014, Nitya Capital has acquired 17 apartment complexes in Houston and one in Dallas.
Deals are in the works for two more properties.
“We like the fact that it’s located very close to the Medical Center,” Agarwal said. “Wehave a tenant base with a lot of nurses and medical workers.”
Chip Nash, Greg Austin and Bob Heard of JLL represented the seller, Broadmead Apartments Ltd.
Older, so-called Class B apartments have continued to attract investors who can make improvements and boost rents, even as some other real estate sectors have faltered.
“Class B properties, like the Broadmead, are consistently occupied by a large segment of the population, presenting buyers with a solid investment and promising value-add opportunity,” Nash of JLL said in an announcement.
The complex is among some 60 Class B apartment properties to change hands this year, according to JLL.
Monthly rents at Class B properties average $1.09 per square foot, compared with $1.53 for the newer Class A units.
The Broadmead’s 95 percent occupancy rate is slightly below Houston area’s overall occupancy for Class B apartments, according to JLL.
Nitya Capital manages some 6,000 apartment units valued at $375 million.