Nicholas Residential has added six Houston-area apartment complexes to its portfolio.
The Dallas-based company acquired 100 percent of the shares of LSREF3 Bravo REIT (Harris), the company announced. The deal establishes a Houston presence for Nicholas Residential, which now owns 2,115 apartment units totaling nearly 1.7 million square feet in the local market.
“The acquisition of LSREF3 Bravo REIT (Harris) represents the careful, deliberate execution of our acquisition strategy: identifying undervalued assets in desirable neighborhoods with strong employment growth and prospects for future development,” Nicholas Residential CEO Paul Panza said in an announcement.
The apartments, which are being renamed to reflect the company’s Bellevue Realty Management brand, are: Chelsea Park, 11000 Crescent Moon Drive in northwest Houston; Riviera Pines, 555 Normandy in east Houston; Sky Hawk, 17231 Blackhawk Blvd. in Friendswood; Country Club Place, 1111 Golfview Drive in Richmond; South Grand at Pecan Grove, 2400 Old S Drive in Richmond; and Veridian, 695 Pineloch Drive in Webster.
Cushman & Wakefield represented Nicholas Residential in the deal. The seller was Hudson Advisors.
Nicholas Residential plans renovations to the units for current and future residents. Amenities at the complexes include clubhouses with coffee bars, updated swimming pools with outdoor kitchens, business centers, dog parks, fitness centers, game rooms and covered parking.
Houston’s strong job growth, with 128,600 positions added over the last 12 months, contributed to a 30 percent rise in apartment sales transactions over the past year, according to commercial real estate firm Marcus & Millichap.
The region’s low apartment vacancy of 6.2 percent and rising rents are also draws to investors. Houston-area apartment rents rose 6.9 percent year-over-year to $1,104 per month in the third quarter.
In another deal, global investment firm Investcorp recently expanded its Houston holdings with the purchase of three apartment properties totaling 1,392 units. The locations were not disclosed.
Privately held Nicholas Residential invests alongside institutional and private clients in affordable apartment communities across the southwest. The company’s portfolio totals 5,000 units across 14 apartment properties in Houston, Mesquite, Plano, Dallas, Fort Worth, San Antonio and Tulsa.