JLL announced that it has closed the sale and arranged financing of The Place at Greenway, a 219-unit, garden-style apartment community in Central Houston.
JLL marketed the property exclusively on behalf of the seller, Redwood Capital Group. Additionally, JLL worked on behalf of the new owner to secure a five-year, fixed-rate acquisition loan from Ready Capital.
The Place at Greenway is situated on approximately six infill acres at 3333 Cummins Street immediately northeast of the intersection of Richmond Avenue and Weslayan Street in the Greenway Plaza submarket. The property consists of 15 two-story residential buildings with a mix of one- and two-bedroom units averaging 875 square feet. Community amenities include a swimming pool with sundeck, poolside cabanas with outdoor kitchen, modern clubhouse with lounge areas and kitchen, newly remodeled fitness center, yoga room, spin room, business center, pet station and covered parking. The property was 95 percent occupied at closing.
The JLL Capital Markets team representing the seller was led by Senior Managing Director Chris Curry, Senior Managing Director Todd Marix, Directors Joey Rippel and Chris Young and Analyst Bailey Crowell.
“The Place at Greenway’s successful disposition is indicative of investor appetite for workforce housing in Central Houston,” Curry noted. “The property’s rent gap compared with new construction, its value-add potential and optionality for future alternative uses underscore the opportunities available for workforce housing assets in core locations.”
“According to Apartment Data Services, Central Houston has lost 5,773 net Class B, C and D units over the last 10 years, while adding 34,268 Class A units during the same timeframe,” Curry continued. “The diminishing supply of workforce housing, now less than 30 percent of available units in Central Houston, and the premium rents and returns obtainable on remaining communities such as The Place at Greenway were very attractive to investors.”
JLL’s Capital Markets team representing the new owner was led by Director Michael Johnson and Analyst Tolu Akindele.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
Deal secured by Holliday GP Corp. (HFF) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc.
