Waterton, based in Chicago, recently completed a multi-property acquisition in the Houston area that totals 809 units spread across three properties. The communities include Madison on the Meadow in Stafford, which has 264 units in 11 three-story, garden-style buildings. Reserve by the Lake is 22 miles from downtown Houston and is comprised of 348 units in 22 three-story, garden-style buildings. Summerwind in Pearland is 197 units in 13 two- and three-story, garden-style buildings. This acquisition, which nearly doubles Waterton’s Houston portfolio, shows its commitment to the metro area.
Houston remains a job building powerhouse adding 93,600 jobs in the 12 months ending July 2019, a 3% year-over-year increase that was double the national average. The population growth has followed the jobs by expanding 2.2% per year, more than three times the national average of 0.7%.
“Following several years of strong economic growth and job creation, Houston remains an extremely important target market for multifamily investment,” said David Schwartz, chairman and CEO of Waterton. “The portfolio presents a remarkable opportunity to enhance our existing portfolio in the region as more and more residents flock to the area and look for convenient, high-quality housing located proximate to Houston’s numerous job centers.”
Waterton is pursuing a value-add path with the properties and laying plans for comprehensive interior and exterior improvements to all individual units, existing clubhouses, and common areas. Stainless steel appliances will be coming in along with cabinet resurfacing, upgraded lighting, and updated plumbing fixtures. Exterior upgrades will include new paint and modernized clubhouses, pool areas, and common area improvements.
“The three assets are not only well located, but they remain in classic or near-original condition, allowing for us to implement a meaningful value-add program across the portfolio,” said Matt Masinter, senior vice president of acquisitions at Waterton. “Additionally, clubhouses and common area amenities remain largely in original condition and are primed for renovations that will make the communities competitive with new stock in the area.”
