A Rarity: Investor Buys Inner Loop Workforce Apartment Community

HOUSTON – (Realty News Report) – The Place at Greenway, a 219-unit, garden-style apartment community near Greenway Plaza has been sold. The complex is one of a shrinking number of workforce multifamily properties in the inner core of Houston.

Located in Houston’s Inner Loop, the Place at Greenway sits on six acres at 3333 Cummins Street near the intersection of Richmond Avenue and Weslayan Street.

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 buyer was Rama Plaza at Greenway LLC.

 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% 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.

The Place at Greenway consists of 15 two-story residential buildings with a mix of one- and two-bedroom units averaging 875 SF. The property was 95% occupied at closing.

Oct. 3, 2019 Realty News Report Copyright 2019