Undercover Billionaire Snags Apartments in Houston Heights

HOUSTON – (Dale King, Realty News Report)Berkadia Institutional Solutions has arranged the sale and financing of the 646-unit The Heights Collection – two new, Class A multifamily communities in the Houston Heights neighborhood – to Florida-based Cardone Capital, headed by a moneymaker known to TV audiences as the “Undercover Billionaire.”

That firm’s CEO is Grant Cardone, a star of Discovery Channel’s high-stakes real estate and investment program. Cardone an author, business coach, educator and a top social media influencers in the world. Cardone is amultifamily investor and holds a portfolio of more than 3,800 apartment units throughout the U.S., with transactions valued at more than $500 million.

The Cardone Capital CEO consults with Fortune 500 companies and customers such as Google, Northwestern Mutual and Morgan Stanley, among others. He is also the executive producer and star of two reality TV shows, and creator of the first online entrepreneur and business television network, Grant Cardone TV.

His company, based in Aventura, Florida, acquired Heights Waterworks and 15thStreet Flats in Houston with a little help from Berkadia, a news release says. Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins of Berkadia Boca Raton, along with Managing Director Brad Williamson of Berkadia Miami, secured acquisition financing for Cardone.

Houston Heights is one of the Space City’s most iconic locales with an affluent housing market and a walkable environment, advantageously positioned close to the city’s largest employment centers in Central Houston.

People living in the Heights can walk to an average of three restaurants, bars, and coffee shops within five minutes. It is considered Houston’s largest, intact historic neighborhood known for its eclectic array of boutiques, antique shops, restaurants, arts markets and neighborhood festivals.

Senior Managing Director Chris Curry and Todd Marix, along with Managing Directors Jeffrey Skipworth, Joey Rippel and Chris Young of Berkadia Houston, represented the seller, Alliance Residential.

“When we were designing these two properties, our goal was to combine modern amenities with walkable locations,” said Kelcie Berry, director of asset management at Alliance Residential Company. “The result is two irreplaceable assets in a high-growth corridor with ample room for rent growth. We are proud of the final product and wish the Cardone team well on the next steps.”

Cincinnati-based Eagle Realty Group, on behalf of Western & Southern Financial Group, originated the loan which has a six-year term, with three years interest only at a fixed rate, and a floating rate thereafter.

“The Heights Collection offered Cardone Capital a unique opportunity to add two brand new multifamily assets, consisting of 646 units both purchased below replacement cost, to their already existing 800 units in Houston,” said Curry.

“Because these two properties stand apart from their peers in terms of location and overall quality, the new ownership has an opportunity to create value in a market that is on the upswing with the return of renters to the urban core.”

“This is the finest and newest asset in one of the premier submarkets in Houston,” added Curry. “Along with Cardone Capital’s extensive resume and reputation, we saw tremendous demand from the institutional debt markets which enabled us to select a portfolio lender to collaborate with our collective team in crafting a loan structure that is highly structured to match Cardone’s investment strategy of 10,000 units.”

Located at 1414 North Shepherd Drive, the 337-unit, eight-story 15th Street Flats was completed in 2021 and offers one- and two-bedroom units ranging from 638 to 1,273 SF. Individual units feature wood-plank style flooring, 10-foot ceilings, and white Carrera-style quartz countertops.

Community amenities includes the only rooftop pool in the Heights, social and business lounges, a private dining room, outdoor living spaces with alfresco dining, an outdoor kitchen with a pizza oven, lush landscaping, direct-access elevators and an exquisite courtyard.

Located at 515 West 20th Street, the eight-story Heights Waterworks was completed in 2020 and offers 309 units of one- and two-bedrooms, ranging from 600 to 1,265 SF. Individual units feature stainless steel appliances with gas stoves, white and grey Shaker style cabinetry, and LED lighting.

Cardone also operates a crowdfunding platform raising more than $650 million going directly to investors via his social media following, bypassing the traditional family office for equity, making institutional quality assets available to everyday investors.

Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group.


Oct. 5, 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  http://tiny.cc/4a2g6y  

Houston 2020 Ebook version  https://tinyurl.com/4xm7z8b5   

File: ‘Undercover Billionaire’ Snags Apartments in Houston Heights

Image: Courtesy Berkadia

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