RREAF JV Buys Apartments After Foreclosure: The Houston Deal Sheet
RREAF Holdings, in partnership with Axonic Capital, acquired 2828 at Royal Oaks, a 510-unit garden-style multifamily community in Houston’s Westchase.
The property was foreclosed on last year after the former owner, Colony Hills Capital, defaulted on a $65.2M loan tied to the property, The Real Deal reported.
This is the first closed joint venture between RREAF, a Dallas-based privately held real estate investment and development firm, and Axonic Capital.
Built in 1995, 2828 at Royal Oaks has 27 two- and three-story residential buildings offering one- and two-bedroom floor plans. The JV plans to reposition the asset, which was distressed “with a broken capital structure,” according to a press release.
RREAF will implement a capital improvement plan to renovate 37% of units in the first year. The property will be renamed Aura Westchase and be managed by RR Living, RREAF Holdings’ in-house property management.
This is RREAF’s first investment in Texas since 2021.
SALES
Shree Avdhoot Krupa of Texas bought a 120-room Red Roof Plus hotel at 15701 Park Ten Place in Houston’s Energy Corridor. Marcus & Millichap’s Skyler Cooper marketed the property on behalf of the seller, Park 10 Hospitality, and procured the buyer.
The hotel was built in 1995 and has a breakfast area, fitness center and guest laundry facilities.
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Marcus & Millichap announced the sale of Cypresswood Crossing, a two-building mixed-use property in Spring. The property has a 91K SF multitenant building with retail and office space, plus a 16K SF retail center.
Marcus & Millichap’s Chris Gainey and Philip Levy represented the seller, a Dallas-based private real estate investment firm. Levy and Scott Abeel procured the buyer, a Houston-based private equity firm.
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SRS Real Estate Partners completed the $12.5M sale of an EōS Fitness property at 17990 W. Lake Houston Parkway in Atascocita. SRS Capital Markets’ Patrick Luther and Matthew Mousavi represented the seller, an East Coast-based developer, as well as the buyer, a Midwest-based private investor.
Built in 2024, the 42K SF property has a 15-year corporate triple-net lease in place.
CONSTRUCTION AND DEVELOPMENT
MetroNational plans to spend $9.1M on a renovation of 9821 Katy Freeway, a 161K SF Class-A office building in Memorial. The renovation will relocate and renovate the building’s skybridge, which connects to Memorial City restaurant offerings.
Upgraded amenities will include a 40-person training room, a 14-person boardroom with a hospitality bar, wellness and mothers rooms, flexible work areas and WiFi-enabled common spaces.
Construction will occur in phases to minimize disruption. Phase 1 will include the skybridge and surrounding landscape and hardscape. Phase 2 is set to address the exterior curtain wall, primary entrances and additional outdoor improvements.
The building will remain open throughout, with a temporary overhead walkway and construction fencing. Construction is expected to be completed this year.
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Austin-based Scenic Capital Advisors completed a renovation of The Sam Houston Hotel, marking the rebirth of the 100-year-old property within the Hilton Tapestry Collection. The hotel at 1117 Prairie St. in Downtown Houston opened in 1924 and was listed on the National Register of Historic Places in 2004.
Renovation work began in June 2024, led by Scenic Capital Advisors CEO Rick Singleton. The renovation redesigned the hotel’s guest rooms, public areas, event spaces and The Pearl restaurant and bar.
Laura Singleton curated the art collection and worked with DBDG Upholstery to design and manufacture bespoke lobby furnishings. Gin Design Group was also part of the project team.
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StreetLights Residential finished construction on The Langley, a boutique residential high-rise on the former Ashby high-rise site between the Museum District and Rice University. It will start to welcome residents next month.
The 20-story building at 1717 Bissonnet St. has 134 residences for lease, with just eight residences per floor. The two- and three-bedroom layouts range from 2,165 SF to 3,400 SF. Monthly pricing starts at $9,100.
Amenities include a fourth-floor lounge with a dining room and catering kitchen, social lounges and a poolside lounge with a beverage center. The property also has 24-hour valet service, rentable private garages and a concierge desk.
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Roers Cos. finished the renovation of Alcott Village, a 248-unit affordable housing community in Houston. The property, formerly known as Summit at Bennington, was originally built in 2003.
Harris County Housing Finance Corp. is a general partner and long-term landowner, and it preserved the long-term affordability of the project. Roers Cos., the property’s owner, acquired the community in 2022 and completed its resyndication and renovation process in October.
The project equipped all apartments with new appliances, HVAC systems, lighting and plumbing fixtures, replaced roofs and made exterior improvements.
Financing project partners include Houston Housing Finance Corp. as the bond issuer and:
- A $29.2M HUD 223(f) first mortgage
- $19.6M in construction bridge loans
- $15M in investment vehicle bonds, sold by Colliers Securities
- $22.7M in Affordable Housing Program tax credit equity
FINANCING
Institutional Property Advisors Capital Markets secured acquisition financing for Reserve at Eagle Landing in the North Houston submarket. IPA Capital Markets worked on behalf of the borrower, SITG Capital, to secure 75% loan-to-cost nonrecourse financing.
The 232-unit community will undergo renovations to improve interior and exterior amenities and rehab offline units. IPA Capital Markets’ Travis Headapohl represented the borrower.
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Dallas-based Hall Structured Finance closed on a $37M first-lien construction loan for the development of Orem Circle Apartments. The sponsor for the project, which will build 270 units across six three-story buildings, is Texas Group. Asher Bittman represented Texas Group.
Orem Circle will be in South Houston in the South Acres-Crestmont Park submarket.
