Arizona Firm Buys Two Apartment Projects

KATY, Texas – (Realty News Report) – Arizona-based MC Companies acquired two adjacent multifamily properties totaling 648 units in Katy, west of Houston.

The acquisition was funded through the firm’s Katy 2 Opportunity Fund LP. The acquisition was made possible by an equity portion from MC Companies and its investors, and financed with a loan provided by MF1 Capital.

MC Companies will combine and rebrand the properties as The Place at Barker Cypress, following the company’s proven value-add investment strategy and continuing the renovation program begun by the previous owners.

The acquisition was made possible by an equity portion from MC Companies and its investors, and financed with a loan provided by MF1 Capital.

The transaction includes the 384-unit, garden-style Enclave at Cypress Park apartments and the 264-unit, garden-style Paramount Apartments.

The properties are situated adjacent to one another along the Barker Cypress Road, just north of Interstate 10 and approximately 20 miles west of downtown Houston.

“Closing this transaction speaks to our success and growth over the last 20 years,” said MC Companies CEO and Co-Founder Ken McElroy. “We appreciate this opportunity and are eager to close more deals of this caliber, as we pursue our goal of 25,000 units under ownership.”

The Houston multifamily market moved into a strong recovery this spring.

The Houston apartment market rebounded with a 5 percent gain in rents and the highest occupancy rate in two years, according to a Houston-based multifamily consultancy.

With economic growth in Texas pushing the recovery ahead, empty apartments are being filled. In June, absorption of Houston apartment remained above 5,000 units for the third month in a row, according to a new report by

The Houston area apartment occupancy rate jumped to 90.7 percent in June, up from 88.4 percent in June of 2020.


CBRE arranged the asset sale and the acquisition financing for the MC Companies deal. Capital Markets Senior Vice Presidents Clint Duncan and Matt Phillips represented the sellers. Vice Chairman of Debt and Structured Finance Michael Thompson arranged the acquisition financing on behalf of MC Companies.

At The Place at Barker Cypress, MC Companies has the opportunity to add value to 328 of the 648 units through upgrades and renovations, as well as complete common area upgrades.

MC Companies founders Ken McElroy and Ross McCallister have been active in the multifamily investment industry for over 30 years. The company said it continues to actively pursue new land for development and existing properties for value-add investment.

MC Companies owns and operates more than 6,500 units in markets including Houston, Dallas, San Antonio, Phoenix, Tucson, Flagstaff and Tulsa.

Other Apartment Deals

In addition to construction, a number of apartment communities have been sold.

CBRE Capital Markets  recently announced it has arranged $100.25 million in acquisition financing for a portfolio of four multifamily properties in Houston’s Westchase District. The four multifamily communities total 1,330 units and about 1 million SF.

The properties, purchased by Westchase Houston LLC,  a joint venture including principal Jade Laye, are located near Richmond Avenue and Hayes Road. CBRE’s Derek Fasulo and Frances Rogers with CBRE’s Capital Markets Debt & Structured Finance team in Houston, arranged the financing on behalf of the joint venture.

Lynd’s $84 Million Purchase

In addition, the Lynd Co, a San Antonio-based firm, acquired the 372-unit Paramount at Kingwood and the 312-unit Villas of Valley Ranch.

The sales price was $84 million or $122,807 per unit for the 684 units, which are located on the northeast side of Houston. A. David Lynd is CEO of the firm.

July 8, 2021 Realty News Report Copyright 2021

For more about Texas real estate, check out the book Houston 2020: America’s Boom Town – An Extreme Close Up  by Ralph Bivins. Available on Amazon  

 Houston 2020 Ebook version     

File: Arizona Firm Buys Two Apartment Projects

Image: Courtesy MC Companies

File: (2) MC Companies. Scottsdale. Arizona Firm Buys Two Apartment Projects. Katy.  CBRE Capital Markets. David Lynd . MF1 Capital. Ken McElroy. Ross McCallister.

Related posts

Major Office Park Nears Full Occupancy

Realty News Report

Bury the Hatchet: Don’t Clear-Cut Urban Tree Canopy

Realty News Report

RNR Real Estate Briefs – Texas & more

Realty News Report

Leave a Comment