Berkadia Institutional Solutions Arranges Sale and Financing of Hines Multifamily Portfolio in Houston to Kushner Companies
The 1,072-unit, three-property portfolio is Hines’s first suburban multifamily offering and marks Kushner Co.’s entry into the Houston real estate market
HOUSTON (January 5, 2022) – Berkadia Institutional Solutions, powered by Moran, announces it has arranged the sale and financing of the Hines Suburban Multifamily Portfolio, three newly built and stabilized institutional-quality apartment communities located in top-tier suburbs of Houston, Texas. Kushner Companies of New York purchased the 1,072-unit portfolio, consisting of Alys Crossing (360 units), Stone Loch (384 units), and The Rosemary (328 units).
Senior Managing Director Todd Marix and Chris Curry, along with Managing Directors Jeffrey Skipworth, Joey Rippel and Chris Young and Director Kyle Whitney of Berkadia Houston Investment Sales and Mortgage Banking, marketed the portfolio on behalf of Hines, one of the largest privately held real estate investors and managers in the world. This portfolio is Hines’s first suburban multifamily housing offering, and Kushner Companies’ first Houston real estate acquisition.
“These best-in-class properties have had impressive lease-ups and are strategically located in growth corridors with affluent demographics and highly ranked school districts,” said Marix. “All three submarkets are ranked in the Top 10 in Houston for overall performance. Their strong demographics underscore rent growth opportunities in the future, and the similarities of the three properties will offer new ownership economies of scale in maintaining operating expenses going forward.”
Added Marix, “These assets reset the standard for luxury in these markets. Their rapid lease-ups reflect both the operational expertise of Willowick Residential, Hines’s management arm, as well as pent-up demand for this type of high-end product in these suburban submarkets.”
Chris O’Neill, managing director at Hines, said, “We are pleased to have completed the full investment cycle for this Houston focused portfolio. We look forward to continuing our growth in the suburban market through both acquisition and development.”
“We’re excited to enter the Houston market by acquiring high-quality assets that are in well thought-out locations in North Houston,” said Riley Wilson who heads Sunbelt acquisitions for Kushner. “This portfolio highlights our continued push to enter new, high-growth markets and our desire to acquire assets that are well-positioned in their respective submarkets.”
Located at 20510 Cypress Plaza Parkway in the Bear Creek/Copperfield/Fairfield submarket, Alys Crossing opened in August of 2020. It is located approximately 45 minutes northwest of downtown Houston. Stone Loch, located at 109201 Boudreaux Road in the Tomball/Spring submarket, opened in June 2020. It is located just under an hour north/northeast of the city’s downtown. The Rosemary, which opened in August 2020, is located at 17401 W. Lake Houston Parkway in the Lake Houston/Kingwood submarket, approximately 45 minutes northeast of downtown Houston. All three properties experienced rapid lease-ups and are stabilized.
“We are proud of the role Willowick Residential team played in this disposition and look forward to imparting our depth of experience and expertise in other markets and for the assets in our portfolio,” said Lisa Newton, senior vice president of multifamily operations at Hines.
All three properties offer spacious and modern one-, two-, and three-bedroom floor plans and feature chef-inspired kitchens with quartz countertops, stainless steel appliances, 42-inch wood cabinetry, washer/dryers in all units, walk-in closets with wood shelving, double vanity sinks and private patios or balconies. Community amenities include a resort-style pool, gas barbecue and lounge area, state-of-the-art fitness center with on-demand virtual trainer and 24-hour access, indoor golf simulator, resident library, resident package center, cyber café and co-working space, and dog park and pet amenities, gated access and 24-hour emergency maintenance. The properties also offers attached garages and carports for some units.