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Increased Cap Rates Create Significant Discount

HOUSTON—Advenir believes investors will be rewarded with significant appreciation as oil prices normalize during the next few years.

By Lisa Brown | lisabrown | Updated on February 24, 2016

Advenir at Stone Park Advenir at Stone Park is a 480-unit, class-A apartment community.

HOUSTON—With more than 1,100 apartment units acquired in the Houston MSA during the last nine months and three acquisitions so far in 2016, Advenir plans to acquire in excess of $350 million by year end. Its latest acquisition, Advenir at Stone Park (formerly known as Broadstone Stone Park Apartments) is a 480-unit, class-A apartment community located at 6160 East Sam Houston Pkwy N.

Todd Linden, chief acquisition officer of Advenir, tells GlobeSt.com: “Advenir believes now is the time to be strategically acquiring Houston multifamily properties within select submarkets. Cap rates have increased 75 bps during the last year, which creates a significant discount. Even though Houston is burdened by oil pricing today, the economy is diverse, and we therefore believe over the next five years there will be continued job and population growth. It may be a contrarian approach, but being extremely well capitalized by longtime high net investors that believe in our track record and investing approach, we expect to increase our Houston portfolio by 1,500 units this year.”

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