New Firm Grabs Off-Market Asset for First Buy

HOUSTON—Newport Real Estate Partners LLC, a newly launched firm focused on the acquisition and repositioning of value-add multifamily properties, has completed its first acquisition. The Fountains at the Bayou is a 460-unit multifamily community that was acquired off-market. The seller was Houston-based Nitya Capital.

Seasoned real estate investors and operators Matt Wilson and Jack Franco, co-founders and principals, bring a depth of experience with value-add multifamily projects totaling in excess of 8,000 units.

“After establishing Newport Real Estate Partners in 2019, we are pleased to hit our first major milestone with the acquisition of this sizable Houston apartment asset,” said Franco. “We liked its attractive basis per unit and its location in a growing south submarket of Houston, a thriving city that is home to the headquarters of SpaceX and NASA, among other major employers.”

Built in 1969, the 31-building property is located on 8 acres at 11810 Algonquin Dr. It features a clubhouse, swimming pool and playground areas. It is near downtown Houston, a few miles from the rapidly expanding Port of Houston and one mile from the expanded Hobby International Airport.

“This property presented a host of management and physical improvement opportunities which fit Newport’s investment philosophy,” Wilson adds. “We are looking forward to making this property desirable for its current and future residents.”

Newport’s business plan within a 24-month period is to create a resident-centric community by implementing Newport’s stringent management and maintenance standards. Additionally, capital will be strategically deployed for a major renovation of the leasing office, enhancing the landscaping and community areas, repairing deferred maintenance, and providing new signage and community branding among other updates and enhancements. Finally, the asset will be renamed Valencia Grove Apartments.

Also during the next 24 months, Newport is seeking to invest approximately $150 million in apartment assets ranging from $15 million to $40 million in markets with high job growth including Houston, Austin, San Antonio and Corpus Christi, as well as Tampa and Orlando.

“Texas continues to attract residents from other states, especially Californians seeking a pro-business environment and tax relief,” Wilson tells GlobeSt.com. “The macroeconomic drivers have become diversified, and we’re seeing steady job growth in the technology, manufacturing and medical sectors. From a multifamily perspective, we believe the major metros will see continued rental growth in specific submarkets and provide growth opportunities for our platform.”

With a cumulative 20 years in the industry and more than $700 million in US apartment acquisitions and repositioning projects in the past decade, Wilson and Franco have created value for investors including a growing base of private equity sources, family offices and individuals.

“Our investment philosophy centers around speed of execution and self-managing all aspects of our business plans,” said Wilson. “By providing superior customer service to our residents from the top down and implementing the latest cutting-edge technology into our platform, Newport provides velocity-driven returns that far exceed other traditional third-party management models.”

The multifamily sector is in another expansion phase with more than 22,000 units under construction market-wide, according to a report by Transwestern. While delivery of these units will likely result in class-A metrics softening, the workforce housing component will remain strong, says the report.