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- Hamilton Point Investments Acquires Four-Property Houston Apartment Portfolio
Hamilton Point Investments Acquires Four-Property Houston Apartment Portfolio
Slice of Real Estate Team
July 08, 2024
Key Highlights:
HPI acquires four Houston properties totaling 1,174 units for $195 million.
Properties include Prose Champion, Prose Copperfield, Prose Cypress Creek, and Prose Franz.
Acquisition price per unit is $166,100, reflecting a significant market correction.
HPI's Texas multifamily footprint nearly doubles to over 2,800 units.
Strong population and employment growth projected to stabilize market by 2026.
Source (Business Wire)
Notable Quote:
“The submarkets were heavily overbuilt over the last couple years resulting in increased vacancy rates and decreased effective rents which, combined with interest rate spikes, led to value reductions of over 20%. We’re buying new construction today in Houston for around $165,000 per unit that just two years ago was priced at $210,000 per unit and would cost maybe $190,000 per unit to build toda. This correction is advantageous for properly funded investors who are able to hang tough for a couple years.”
Our Take:
Hamilton Point Investments' strategic acquisition in Houston underscores the firm's adeptness at capitalizing on market corrections. The significant price per unit reduction reflects the broader economic impacts of overbuilding and interest rate fluctuations. However, HPI's foresight into Houston's long-term growth potential, driven by robust population and employment gains, positions them to benefit from value appreciations projected by 2026. This acquisition not only enhances HPI's portfolio but also exemplifies their disciplined investment philosophy, aligning with market conditions to optimize returns for their investors. The firm's expansion in Texas highlights the state's enduring appeal for real estate investment, reinforced by a recovery trajectory poised to stabilize and grow the market.