Houston IS Record Breaking 2022

January 9, 2023

Houston IS Record Breaking 2022

January 9, 2023

Berkadia Houston Marks Record-Breaking Year in Multifamily Property Sales

The seven-person team, which joined Berkadia in 2021, closed on approximately $3 billion in multifamily sales in 2022, including several trophy assets in the Houston MSA

HOUSTON (January 9, 2023) – The Berkadia Houston Investment Sales marked a record-breaking year in 2022, closing on 55 multifamily property sale transactions with a gross dollar volume of approximately $3 billion. The seven-person team consists of Senior Managing Directors Chris Curry and Todd Marix, Managing Directors Jeffrey Skipworth, Joey Rippel and Chris Young and Director Kyle Whitney. According to MSCI Real Capital Analytics, Berkadia Houston was the top performing investment sales team in the Houston metro, as ranked by multifamily deal transaction volume in 2022.

“2022 was one of the most active years on record for the Houston MSA, even with the slowdown in transaction activity during the third and fourth quarters,” said Curry. “We think this speaks to the strength of multifamily fundamentals in Houston, the quality of assets and its cost-effectiveness relative to other markets.”

Added Marix, “Looking further into 2023, we anticipate investors will continue to wait for stability in interest rates, and a pricing reset, before resuming activity. That said, there’s still plenty of dry powder on the sidelines, the debt markets are likely to loosen up next year and multifamily continues to be a favored asset class. There will also be more opportunistic deals hitting the market in the second and third quarter.”

Other observations about the Houston market:

  • Multifamily fundamentals continue to moderate, with rent growth likely in the 2 to 4 percent range this year
  • A declining pipeline of new multifamily development will benefit fundamentals, supporting organic rent growth
  • The outlook for the energy sector remains strong, with employment likely to grow in 2023
  • Houston is forecast to see strong job-growth in 2023 according to the Greater Houston Partnership

The Berkadia Houston team arranged the following notable transactions in 2022:

  • The sale of Chelsea Museum District, a 325-unit trophy-quality multifamily high-rise in Central Houston, on behalf of Alliance Residential Company, a residential real estate developer based in Scottsdale, Arizona.
  • The sale of Lenox Clear Lake, a ­380-unit, Class A garden-style multifamily community, on behalf of the seller OHT Partners. The Praedium Group acquired the property.
  • The sale of The Dawson, a 354-unit multifamily community in the Energy Corridor, West Houston’s Central Business District, on behalf of seller RPM Living.
  • The contribution and finance of the Southstar Sunbelt Multifamily Portfolio, a four-property portfolio consisting of 1,115 apartment units in Texas and Florida, on behalf of Southstar Properties. MLG Capital was the buyer.
  • The sale of two workforce multifamily properties with 687 units combined in a Qualified Opportunity Zone (QOZ) in Houston: The Alora and The Ellis. The properties were marketed on behalf of The Barvin Group and sold to Indus Management.