SPRING, TX-Prime Property Investors has made its entry into Texas by partnering with Trammell Crow Residential on a new project in Houston's far north submarket. Specifically, Northbrook, IL-based PPI is financing TCR's 346-unit Alexan at Auburn Lakes, which is scheduled to break ground this month.
The multifamily property will be situated on 12.5 acres on West Rayford Road, near Gosling Road. The scheduled completion date for the project is mid-2015.
In addition to being PPI's first move into Texas (in general) and Houston (in particular), Alexan at Auburn Lakes is the equity firm's first move into new construction development. According to company co-CEO Barb Gaffen, it made sense to build rather than buy, particularly given the red-hot Houston market.
"We were looking for class A multifamily deals," she explains, adding that class B and potential value-add opportunities were studied as well. "What we realized, after many meetings and many conversations with those in the area, is that those deals were trading at a much higher rate, than, at least, TCR can build." She tells GlobeSt.com PPI was introduced to TCR through a mutual contact at Apartment Realty Advisors.
PPI is currently pursuing more potential properties – both to build and to buy – just in the Houston region, for the time being. Gaffen points to the fundamentals as to the reason why. "It's leading all areas in jobs growth," she adds. "All the leading economics and bureau census data suggests it's number one in population growth."
Gaffen was reluctant to discuss specific project PPI is pursuing, only to suggest that the company is eyeing a buy or build in Cinco Ranch, in the far west Houston submarket (another very hot area). "We're also looking to buy properties close to the city, in the inner loop," she adds.
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