Like Nessie or Big Foot, equity for multifamily development in the suburbsis something most people can't quite capture. Unless, of course, you're in Houston.

ARA VP Adam Allen recently closed four equity deals for multifamily construction here, and three were in the 'burbs. He says our fundamentals are coaxing cash from institutional and private investors. Strong sponsors helpthese projects are with Alliance Residential and Trammell Crow Residential. The deals: the 203-unit Broadstone 3800, Midtown; 370-unit Broadstone Greenhouse, Katy; 380-unit Alexan Creekside Pines, The Woodlands; and 354-unit Alexan Enclave, Energy Corridor. Investors find the latter two submarkets particularly compelling, viewing them almost as infill sites. Adam has two more equity deals closing here (and one in Austin) this quarter.

The biggest challenge in financing Broadstone 3800 (above), he says, was getting equity comfortable with the amount of new supply being built inside the Loop. But Midtown is the hot spot for young pros, and this project is being built in the path of growth (the southern edge). Lots of streetscape improvements are under way (including $8M on West Alabama), and the submarket'srent growth is strong. Plus, deals are trading above replacement, making development lucrative. Adam tells us this investor was new to development, a trend that will continue as traditional equity players are either gone or smaller than last cycle.