The Opportunity
Class A, Core Plus Multifamily Investment Opportunity in Central Houston
District 28 is positioned in the best job growth corridor in Houston’s urban core. More than 42,000 high-wage jobs in emerging life sciences, biotech, and healthcare related fields are projected to be created by the $3 billion in new development underway in the Texas Medical Center. With limited new housing planned, demand will outpace supply and create an opportunity for outsized returns. District 28 is available below replacement cost.
2015
Year Built
4.24
Total Acreage
299
Total Units
777
Avg Unit SF
$1,390
Avg Rent/Unit
$1.78
Avg Rent/SF
Investment Highlights
Leasing Momentum
District 28 is 95% leased. New leases are being signed with no concessions and are averaging 8.7% higher rents on trade outs.
Central Location To New Development
District 28 is situated between TMC3 (5 million square feet planned) and Levit Green (4 million square feet planned) with prime frontage along Old Spanish Trail.
Below Market Rents
District 28 is operating at an 18% discount to the average Class A rent in the submarket with 28 mid-rise properties exhibiting higher rent levels.
Limited New Supply
District 28’s submarket has the smallest new construction pipeline inside Houston’s inner loop with one community in lease-up and two communities under construction.
Innovation Corridor Address
District 28 is located on the south end of Houston’s Innovation Corridor next to the Texas Medical Center (TMC), the eighth largest business district in the United States with 50 million total square feet, 106,000 employees, and 60,000 students.
Pending Housing Deficit
The lack of new multifamily and single-family construction relative to the incoming new job supply will create a substantial demand/supply imbalance.
Startup Incubators Proximity
District 28 is also positioned between TMCX and The ION in Midtown, both of which are actively supporting operations for newly funded life sciences and renewable energy firms.
Barriers-to-Entry
Available land is limited in the densely populated local area with most remaining land sites owned by TMC.
Meaningful New Job Growth
Large-scale capital investments by TMC, Hines, and Texas A&M University are underway with phase one deliveries scheduled for this year and next year.
Leading Submarket Performance
District 28's submarket has the highest occupancy in Houston's urban core per Apartment Data Services and highest projected rent growth for 2022 (8.2%) per Axiometrics.
Photo Gallery
amenities
Community
- Social clubroom with demonstration kitchen
- Executive business lounge with conference table
- Hospitality lounge with latte and tea bar
- 24/7 athletic center with cardio theater
- Dedicated spin room
- Dog park
- Resort-style pool with cabanas
- Outdoor summer kitchen with grilling area
- Relaxation courtyard
- Air conditioned corridors and direct access garage parking
Apartment Home
- 10’ ceilings
- Two wood-style flooring options
- Granite or quartz countertop options
- Oval stone or linear glass backsplash options
- Stainless steel appliance packages
- Built-in beverage coolers available
- Custom solar shades on windows
- Full-size washers and dryers provided
- Framed bathroom mirrors
- Walk-in showers available
Contact Us
berkadia
INVESTMENT SALES and mortgage banking
TODD MARIX
Senior Managing Director
+1 (713) 826-5979
todd.marix@berkadia.com
CHRIS CURRY
Senior Managing Director
+1 (713) 553-0151
chris.curry@berkadia.com
JEFFREY SKIPWORTH
Managing Director
+1 (214) 533-3322
jeffrey.skipworth@berkadia.com
CHRIS YOUNG
Managing Director
+1 (972) 743-5742
chris.young@berkadia.com
JOEY RIPPEL
Managing Director
+1 (601) 919-5155
joey.rippel@berkadia.com
kyle whitney
Director
+1 (713) 724-1456
kyle.whitney@berkadia.com
MICHAEL CASE
Financial Analyst
+1 (346) 444-8960
michael.case@berkadia.com
tucker s. knight
Senior Managing Director
Mortgage Banking
+1 (713) 469-4515
tucker.knight@berkadia.com
2828 Old Spanish Trail | Houston, TX 77054
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
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