Apart­ment de­mand

Hur­ri­cane Har­vey has jump-started a re­cov­ery in Hous­ton’s over­built mar­ket.

Houston Chronicle Sunday - - BUSINESS - By Kather­ine Feser kather­ine.feser@chron.com twit­ter.com/kfeser

“Ev­ery­body is very bullish about mul­ti­fam­ily in the city of Hous­ton right now.” Chris Curry, HFF man­ag­ing di­rec­tor

Hous­ton-based GPI Real Es­tate Man­age­ment Corp. has added a re­cently built apart­ment midrise in the En­ergy Cor­ri­dor to its port­fo­lio with the pur­chase of H6 in part­ner­ship with Hong Kong-based Wai Kee Hold­ings.

Aba­cus Cap­i­tal Group, a New York-based apart­ment de­vel­oper and op­er­a­tor, com­pleted the 293-unit com­plex in 2015. The prop­erty, at 14805 Grisby Road, near the south­west cor­ner of Texas 6 and In­ter­state 10, did not flood dur­ing Hur­ri­cane Har­vey or sub­se­quent re­leases from the nearby Barker and Ad­dicks reservoirs, ac­cord­ing to HFF, which mar­keted it.

The deal comes as Har­vey has jump-started a re­cov­ery in Hous­ton’s over­built apart­ment mar­ket. Dis­placed res­i­dents are fill­ing up units in a mar­ket that had al­ready slowed the pace of con­struc­tion. About 10,000 units are un­der con­struc­tion, with 5,500 units ex­pected to be com­pleted by year-end, ac­cord­ing to HFF.

“Ev­ery­body is very bullish about mul­ti­fam­ily in the city of Hous­ton right now,” HFF man­ag­ing di­rec­tor Chris Curry said.

“Since the hur­ri­cane, it’s only got­ten stronger.”

So far in 2017, Hous­ton has ab­sorbed 23,901 apart­ment units, with 10,926 of the units leased after the storm, ac­cord­ing to Apart­ment Data Ser­vices data pro­vided by HFF. That sur­passes the re­cent peak of 16,089 units ab­sorbed in 2013 and com­pares with 4,492 units in 2016.

Sev­eral fac­tors are driv­ing mul­ti­fam­ily sales, Curry said. In­vestors can of­ten buy newer prop­er­ties for less than the cost to build them, as ma­te­rial and la­bor costs have gone up. They will likely be able to get higher rental rates in the fu­ture as the mar­ket im­proves and con­ces­sions go away, he said.

Oc­cu­pancy at H6 rose to 95 per­cent at the time of sale from 90 per­cent be­fore the storm, Curry said. The four-story prop­erty, with one- and twobed­room units av­er­ag­ing 827 square feet, is zoned to Katy In­de­pen­dent School District. Con­tem­po­rary-style units have stained con­crete floors, European cab­i­netry, gran­ite coun­ter­tops and pri­vate yards in select units. Ameni­ties in­clude a pool, court­yard with Zen gar­den, fit­ness cen­ter, game room and dog park.

The HFF team rep­re­sent­ing Aba­cus Multi-Fam­ily Part­ners II also in­cluded se­nior man­ag­ing di­rec­tor Todd Marix.

Aba­cus Cap­i­tal Group also de­vel­oped Park­way Flats at Wes­theimer and Eldridge in the En­ergy Cor­ri­dor.

Steve Hinds

GPI Real Es­tate Man­age­ment Corp. has pur­chased H6, a 293-unit apart­ment midrise at 14805 Grisby Road near In­ter­state 10 and Texas 6.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.