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Downturn Creates Opportunities for Investors

HOUSTON—While national investors have shied away because of the downturn in the oil industry, others see opportunity in the void and have allocated funds for building portfolios.

By Lisa Brown | Updated on October 19, 2016
Cypress Ridge Cypress Ridge Apartments is in close proximity to major employers such as the Medical Center.

HOUSTON—The previous owners of Cypress Ridge Apartments located at 2331 Bammelwood Dr. made a number of capital improvements to the exterior of the complex, indicating to investors that the property was one for possible consideration. Indeed, with a decrease of 0.9% in the median asking price per unit for multifamily properties compared to the prior three months, value-add properties are finding new ownership. According to LoopNet, this is an overall increase of a staggering 58.4% compared to last year’s prices. And, the current median price is $75,763 per unit for multifamily properties in the metro, GlobeSt.com learns.

The new owner, The PPA Group, has plans to delve into unit interiors for upgrading. All of the apartments will get new appliances, paint, flooring, lighting, fixtures, hardware, and cabinet and counter resurfacing.

“We like the diversity of the economy in Houston and think it is a great time to invest there,” says CIO John A. Latham. “It’s an underappreciated market. Lots of national investors are shying away from Houston because of the downturn in the oil industry, which creates a great opportunity for us. We have great, supportive equity partners who have allocated significant funds to us and we are going to continue to look at Houston to build a great portfolio.”

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