Breaking News: Strong Port Draws Multifamily Investors
Sun Holdings purchased Liberty Hills, a 228-unit multifamily property on the east side of town. And it’s all thanks to some strong stats at the Port. (When you make a big deal, it's good to celebrate with a sweet port statistic.)
ARA principal David Mitchell (here to the right of principal David Wylie) repped seller Guefen Development and tells us he’s seeing more buyers for Houston apartment assets than ever before. And although the east side has historically not been a target for investors, Liberty Hills got quite a few offers. It’s a well-built and attractive community, but the Port’s growth and flurry of petrochem jobs truly caught some eyes. (Let that be a lesson to you kids: If you wanna get noticed in school, walk with a confident swagger and offer petrochem jobs.)
According to the Port of Houston Authority, trade through the Port accounts for over 1 million jobs in Texas, and $179M in economic activity. That’s only increasing; the Greater Houston Port Bureau reports that ship channel investments through 2015 will create nearly 112,000 direct and 154,000 indirect jobs. (As long as it doesn't attract pirates... or Johnny Depp.) According to Apartment Data Services, multifamily is doing well in the area, with occupancies in the Gulfgate/Almeda Mall, Galena Park/Jacinto City, Pasadena/Deer Park, and Baytown submarkets averaging 91.8% in Q4. (Galena Park/Jacinto City is the real standout, with nearly 97% occupancy.) The acquisition of Liberty Hills, pictured, was financed through a JP Morgan CMBS loan and private equity from Israel.