Oak Coast Buys Webster Community
Oak Coast Properties purchased Falls at Clear Lake, an apartment complex on Nasa Road 1 in Webster, for $26M. It’s the California investor’s first acquisition in Houston, and there will be more—managing partner Phillip Nahas (here with his daughter) tells us Oak Coast wants scale in its markets so it can achieve operating efficiencies and economies. That means it’ll be trying to amass around 1,000 units here; this community is a good start at 400 units. Don’t be surprised if more of those are around Clear Lake—Phillip’s team is looking for areas where the job market is strong and diversified and economic growth is sustainable and not totally dependent on a singular sector. (Besides the petrochem boom happening there, NASA and Webster Health Care Corridor are big drivers, and Oak Coast is excited by the nearby Baybrook Mall expansion.) Plus, this area has limited supply of multifamily units, with nothing in the pipeline.
Falls at Clear Lake, pictured here, will get a $4M renovation. Oak Coast has been a more active investor this year than it planned; it came into 2015 with a goal to buy $125M of Class-B and C multifamily and hospitality assets. The Webster deal pushes it to $214M; next year, it’s targeting $300M of acquisitions. Phillip tells us the performance so far above its goal is a result of several unanticipated, opportunistic large transactions that supplemented its consistent deal flow. It’s already got $125M of deals scheduled to close in Q1 ’16.