Firm Rescues Value-Add Apartment Complex in Houston
Houston Chronicle reports: ST Residential, a Chicago-based real estate company that is a collaboration between investors TPG and Starwood Capital, continued to build their firm's momentum with the purchase of the Mosaic on Hermann Park in Houston, TX. The high-rise, 790-unit apartment property fell into distress over one year ago and was purchased by ST out of foreclosure.
Since then, the firm has brought on Dallas-based Premier Communities Management Co to manage the property, and poured $3 million into renovating the interior, which now includes a 24-hour gym and a renovated pool area, among other amenities. On the ground floor, ST has also had greater luck in leasing the retail space to help build confidence in the property among renters and buyers. Their efforts are paying off, as since taking over the property, occupancy for the rental units has increased from 30% to 71%.
Of the property’s turnaround, Real Capital Analytics’ managing director Dan Fasulo commented that, “A company such as ST Residential can take over a foreclosed project for a discounted price, recover as much value as possible for the lender, sell the units at market price and make a nice return…The Mosaic is a gorgeous property…This one looks like it could turn out to be a home run.”
As pricing firms and demand rises for multifamily units around the country, more rescue projects such as ST’s Mosaic will appear. Please see the full article on this story at the Houston Chronicle’s site.
View the full article on Houston Chronicle: Firm Rescues Value-Add Apartment Complex in Houston
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Posted by: Nina Turner