Lakes of 610 is a 276-unit multifamily community in southwest Houston.
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HOUSTON—In a rare value-add opportunity situated across Houston's Inner Loop, Berkadia arranged the sale and financing of Lakes of 610, a 276-unit multifamily community in southwest Houston. Director Jennifer Ray and senior managing director Ryan Epstein of Berkadia's Houston office represented the seller, Starwood Capital Group, in the transaction.
Managing director Andy Hill of Berkadia's Austin office secured a $19.7 million loan on behalf of Western Wealth Capital. Berkadia arranged and Freddie Mac purchased the loan.
"Lakes of 610 offered a rare value-add opportunity in Houston due to all of its units maintaining their original finishes, as well as the property's in-fill location," said Ray. "After a potential rehab package, the asset may yield greater rents for the owner in an area surrounded by newer communities while improving the quality and standard of the property throughout."
Built in 1983, Lakes of 610 is located at 2701 West Bellfort Ave. One- and two-bedroom units include mirrored closet doors, private balconies and patios, breakfast bar, dishwasher and extra storage. Community amenities include a swimming pool and spa, gated access and 24-hour maintenance.
"Western Wealth has plans for a major renovation in redoing the clubhouse, common areas and exteriors," Ray tells GlobeSt.com. "Also, there are plans to overhaul the interiors with an appliance package, updated flooring, plumbing and lighting fixtures. Lakes of 610 is uniquely positioned as the only '80s vintage asset surrounded by new class-A apartments."
Lakes of 610 is adjacent to Texas Medical Center, the largest medical center in the world and new developments such as TMC3 that will bring more than 25,000 jobs. Galleria/Uptown is approximately 10 minutes away and downtown Houston is about 15 minutes away.
Stabilized occupancy levels have resulted in positive rental rate momentum, and while the trailing 12-month rental rate registers 3% growth, trailing six-month annualized rental rate growth is 4.7%, according to a recent report by JLL. One submarket that has recorded notable organic rent growth is Westchase, which boasts 7.3% trailing six -month rental rate growth with minimal fluctuation in total inventory.
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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.
