Berkadia announces it has arranged the sale and financing of Hollister Apartments, a 156-unit multifamily garden-style community in the Dickinson suburb of Southeast Houston. Managing Directors Chris Young and Joey Rippel and Director Kyle Whitney of Berkadia Houston represented the seller, Sunstone Properties Trust, a multifamily real estate investment manager based in Southern California.
Director Johnny King of Berkadia Houston secured acquisition financing on behalf of Lone Star Capital, a real estate investment firm based in New York. Freddie Mac originated the loan.
“Hollister apartments is well positioned between job-rich Clear Lake and Galveston beaches and offers excellent lifestyle amenities,” said Young. “Current ownership has invested $6 million in renovations, and all common areas and amenities were updated, causing a 40 percent rent increase. Hollister is primed for additional income gains and value appreciation under new ownership.”
Added King, “High barriers to entry due to zoning around this community has resulted in limited competition from newer product. Hence, workforce product and especially renovated communities like Hollister are positioned to outperform peers in this submarket.”
“Lone Star is excited to add Hollister to its growing Houston portfolio due to the area’s tremendous population growth and stability. Building off the seller’s strong base, our business plan includes adding smart home technology and package lockers to the asset, installing washers and dryers throughout the community, and adding a fitness center, business center, and upgraded lighting,” said Rob Beardsley, Principal of Lone Star Capital.
Built in 1976 and renovated in 2019, Hollister Apartments is located at 810 Deets Road, and offers one-, two- and three-bedroom apartments. Newly renovated units range in size from 362 square feet to 1,350 square feet and feature modern luxurious finishes, wood-style flooring, stainless steel appliances, granite countertops in kitchens and bathrooms, white shaker-style cabinets, kitchen pantries, carpeted bedrooms, ceiling fans, walk-in closets, rainfall shower heads, oval bath tubs, linen closets and private patios. Community amenities include two swimming pools with large sun decks, poolside grills, enclosed pet park, clothes care facility, mature landscaping and open green spaces, covered and reserved parking, perimeter fencing and remote-controlled access.
Situated in Dickinson, between Galvelston and Houston, the Hollister Apartments are minutes away from the Gulf 45 freeway, making it a gateway to both the beach and the big city, and are close to the Sam Vitanza Stadium, shopping, fine dining and numerous historical sites.