New Multifamily Asset in Core Location Leverages Employers
When taking into account the lack of new supply within three miles, Houston’s class-A infill communities have become increasingly uncommon yet assets that offer long-term stability and value appreciation are desirable.
HOUSTON—The city’s multifamily market keeps bringing out-of-state investors and capital to the city, this time with New York-based Praedium Group’s purchase of the infill community of The Everly, a 387-unit class-A apartment complex situated between the Energy Corridor and Galleria. The privately held firm purchased the asset from San Antonio-based Embrey Partners, Ltd., which was represented by senior managing director Ryan Epstein, director Jennifer Ray and associate director Scott Bray of Berkadia’s Houston office.
“Houston’s class-A infill communities have become increasingly uncommon yet highly desired assets that offer long-term stability and value appreciation for several reasons,” said Epstein. “In addition to a suite of modern amenities, the presence of a newly built asset in a core location between Uptown/Galleria and the Westchase District provides compelling opportunities to leverage surrounding employers and amenities, securing its viability and demand especially when taking into account the lack of new supply within three miles.”
The Everly is located at 2827 Dunvale Rd. and was completed last year. One- and two-bedroom units include stainless steel appliances, walk-in closets, custom wood cabinetry, granite and quartz countertops and framed mirrors. Community amenities include a fitness center, Wi-Fi lounge, swimming pool with lounges, an outdoor fire pit, dog park and dog wash, a beer garden and an indoor golf simulator.
“The size of the site allowed Embrey to design a wide variety of floorplans including townhomes, first floor units with pet yards and traditional mid-rise apartments,” Ray tells GlobeSt.com. “These features, coupled with an amenity package unique to this submarket, enabled The Everly to stabilize and lease up quickly with few concessions.”
Situated between the Energy Corridor and Galleria areas of Houston, The Everly is located between the second- and third-largest business districts in Houston. Major employers nearby include the headquarters of BP America, ConocoPhillips, Marathon Oil and Spectra Energy Group, with approximately 47 million square feet of combined office in proximity to the asset.
Multifamily builders will continue to scale back deliveries this year to move supply and demand closer to equilibrium, according to a multifamily report by Berkadia. Deliveries may remain subdued in the near-term as multifamily permits were filed for 12,300 units in 2018, down more than 20% from the preceding five-year average issuance. Apartment additions will remain concentrated in the Inner Loop with nearly half of all deliveries this year, where single-family housing starts and apartment deliveries continue to lag new household formation.
Driving demand will be employment growth. Total nonfarm employment is forecast to expand 2.6% or by 81,100 jobs this year, according to the report.