29th Street Capital (29SC), a privately-held real estate operator, has acquired Limestone Apartments, a 1999 vintage, 438-unit multifamily community located in West Houston. 29SC plans to implement a capital plan which will include Interior upgrades, new granite countertops, modern paint, black appliances, and new cabinets. Exterior renovations will focus on landscaping, signage and amenity improvements.
“This is a newer, high-quality asset in a growing submarket,” said Doug Burt, Vice President of Acquisitions in Houston. “Limestone will benefit from the expected population growth of 9% within a five-mile radius over the next five years, and lack of new supply coming to the market.”
Houston’s Class A apartment market is now experiencing improved fundamentals after experiencing declining occupancies and increased concessions due to the development pipeline. The U.S. Census Bureau ranked the Houston metro area second in the U.S. for population growth in 2018. It leads the nation in employment growth.
“Houston is expected to receive its lowest number of new units in nearly a decade,” Burt added. “We feel that the market has finally leveled out allowing a clear runway over the next few years.”
Limestone Apartments is close to the Shell Technology Center, which has approximately 2,000 scientists, technologists, engineers, consultants, sales and support personnel. The property is about five miles south of the Houston Energy Corridor via Interstate 6. By 2030, the corridor is expected to reach 45.2 million square feet of office/mixed-use space.
This is 29th Street Capital’s second acquisition in the Houston area in the past six months and ninth in the past five years. Over the past 12 months, 29SC has also acquired 18 conventional multifamily assets throughout the U.S. and continues to actively pursue additional opportunities.
The transaction closed March 11. The sale price and seller were not disclosed.
Formed in 2009, 29th Street Capital is a privately-held real estate investment and advisory firm that employs a value-added investment strategy in acquiring properties that typically fall below the radar of its institutional peers.
29SC’s conventional multifamily portfolio currently consists of more than 8,450 units having acquired over 14,800 units across its 14 offices in the U.S. Investments typically require approximately $10 million to $100 million of total capital and involve the acquisition or recapitalization of individual real estate assets, portfolios or platforms. Learn more about 29SC at https://29thstreetcapital.com.