STAFFORD, TX—As occupancy rates are anticipated to increase in 2018, operators will look to accelerate rent growth, making multifamily assets in high-barrier markets compelling options for investors. A recent example was the sale of Estates at Fountain Lake, a 306-unit multifamily asset.
Berkadia represented the seller, Prime Property Investors LTD, a real estate investment firm based in Northbrook, IL, and arranged the financing on behalf of the buyer, GPI Investments LLC, a multifamily investment company based in Missouri City, TX. Fannie Mae originated the fixed-rate loan with multiple years of interest-only payments.
Berkadia's Houston office conducted the transaction. The professionals involved include senior managing directors Ryan Epstein and Cutt Ableson, director Jennifer Ray and associate Scott Bray.
Epstein says the expected 3.6% rise in rent growth will be encouraged by occupancy that may accelerate nearly 13% from 2017 absorption.
“Good suburban markets are becoming more in favor with investors because they did not receive the same amount of new supply as the urban areas did,” Epstein tells GlobeSt.com. “The bulk of development in the last few years has been focused in the Inner Loop, while suburbs were relatively overlooked by developers. In some cases, this has given landlords more pricing power in the suburbs, because they are not competing with several properties in lease up.”
Built in 1998, Estates at Fountain Lake is located at 10498 Fountain Lake Dr. The multifamily community features 306 units in multiple three-story garden style buildings. One- and two-bedroom units feature gourmet kitchens, 9-foot ceilings with double crown molding, built-in computer desk, full-sized washers and dryers, walk-in closets, private terraces or balconies, and an entertainment serving bar.
Estates at Fountain Lake is located in the Sugar Land submarket of Houston. The community is located near a variety of shopping, dining and employment centers, including Fort Bend Children's Discovery Center, AMC Fountains 18 and Sugar Land Regional Airport. The complex is also less than five minutes away from Interstate 69 and about 10 minutes away from Sam Houston Tollway.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
