Chicago investor gains Houston apartment complex
Chicago-based Waterton has purchased The Plantation at The Woodlands, a 432-unit apartment complex at 3720 College Park Drive, as part of a portfolio acquisition totaling eight multifamily properties in four states.
The property, about 35 miles from downtown next to W.G. Jones State Forest, was purchased from a partnership controlled by CBRE Global Investors. It’s the largest of four local communities owned by Waterton, including Villas at Hermann Park, the Haven at Eldridge, and Carrington at Barker Cypress. Waterton has amassed a portfolio of more than 1,300 units across the Houston area since 2015.
Waterton, which handles its own design, construction and operations, plans to improve the units and shared spaces to boost net operating income, the company said. The gated community has one-, two- and three-bedroom plans, a business center, game room, fitness center, two pools, grilling stations and other amenities.
“The property has upside potential and will benefit from both a very strong local economy and our strategic value add program,” Waterton senior vice president of acquisitions Matt Masinter said in an announcement.
The 3,685-unit portfolio acquisition included properties in Dallas, Plano, and in Phoenix, Raleigh, N.C., and Springfield, Va.
“The assets are a great addition to Waterton’s existing portfolio,” chairman and co-founder David Schwartz said. “We’ve been actively pursuing opportunities in these markets for years and are excited about our most recent acquisitions.”
The deal comes as fundamentals have improved in Houston, with apartment occupancy rising 2 percent and rents rising 4.7 percent in the last year, according to Apartment Data Services. Occupancy stands at 89.9 percent overall.
Through the first quarter, annual apartment sales rose 17 percent year-over-year to $94,900 per unit, according to Marcus & Millichap.
Privately held Waterton’s portfolio includes approximately $4 billion in multifamily and hospitality properties nationwide.