HOUSTON – (Realty News Report)– Lone Star Capital, a real estate investment firm based in New York, acquired the Hollister Apartments, a 156-unit garden-style community in Dickinson, southeast Houston.
“Lone Star is excited to add Hollister to its growing Houston portfolio due to the area’s tremendous population growth and stability. Building off the seller’s strong base, our business plan includes adding smart home technology and package lockers to the asset, installing washers and dryers throughout the community, and adding a fitness center, business center, and upgraded lighting,” said Rob Beardsley, Principal of Lone Star Capital.
Chris Young, Joey Rippel and Kyle Whitney of Berkadia Houston represented the seller, Sunstone Properties Trust, a multifamily real estate investment manager based in Southern California.
“Hollister apartments is well positioned between job-rich Clear Lake and Galveston beaches and offers excellent lifestyle amenities,” said Young. “Current ownership has invested $6 million in renovations, and all common areas and amenities were updated, causing a 40 percent rent increase. Hollister is primed for additional income gains and value appreciation under new ownership.”
Johnny King of Berkadia Houston secured acquisition financing on behalf of Lone Star Capital. Freddie Mac originated the loan.
“High barriers to entry due to zoning around this community has resulted in limited competition from newer product,” King said. “Hence, workforce product and especially renovated communities like Hollister are positioned to outperform peers in this submarket.”
Built in 1976 and renovated in 2019, Hollister Apartments is located at 810 Deets Road, and offers one-, two- and three-bedroom apartments. Newly renovated units range in size from 362 SF to 1,350 SF.
Situated in Dickinson, between Galveston and Houston, the Hollister Apartments are close to the Gulf Freeway and the Sam Vitanza Stadium.
Dec. 23, 2021 Realty News Report Copyright 2021
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Photo: Courtesy Berkadia
File: Lone Star Buys Apartments Near Gulf Freeway
File: (2) Berkadia. Lone Star Buys Apartments in Dickinson. Freddie Mac. Sam Vitanza Stadium