Hamilton Point Investments ‘Goes Big’ in Texas with $450 Million of Multifamily Acquisitions
2024年7月2日 - 11:00PM
ビジネスワイヤ(英語)
Sees Opportunity in Texas Apartment Pricing
Downturn - Acquires 2,814 Apartment Units
Hamilton Point Investments (“HPI”), a real estate private equity
firm, today announced that it has acquired a four-property Houston
apartment portfolio totaling 1,174 apartment units, which were
built in 2022. The properties were purchased from a Texas-based
multifamily developer for $195 million, which represents a cost per
unit of $166,100. Three of the assets closed in late June and one
closed in May.
HPI owns and manages multifamily properties, hotels, student
housing, and manufactured housing communities. It raises its equity
from accredited individual investors through their independent
broker-dealer financial advisors, as well as from registered
investment advisors in a series of closed-end real estate private
equity funds.
The Houston portfolio includes:
- Prose Champion in Houston – 360 units
- Prose Copperfield in Houston – 361 units
- Prose Cypress Creek in Cypress – 240 units
- Prose Franz in Katy – 213 units
These recent acquisitions build on the firm’s recent push into
Texas to capitalize on the significant multifamily pricing
correction occurring in the state.
“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%,” said Matt Sharp, HPI’s co-founder and
managing principal. “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
today.”
HPI calculates that strong population and employment growth will
return these markets to stabilized equilibrium by 2026, at which
point fundamentals should push values back into that $210,000 per
unit range.
“Not much will be added to the market after this year, so growth
will get things back on track,” added Sharp.
HPI’s Previous Recent Texas Acquisitions
The addition of the new multifamily properties in Houston
significantly expands HPI’s footprint in Texas and nearly doubles
the total number of units it owns in the state. In total, the new
acquisition brings HPI’s multifamily properties in Texas to ten,
with more than 2,800 units owned in the state.
HPI existing properties in Texas include:
- The Dakota in Victoria – 224 units
- Icon at Yorktown in Houston – 115 units
- The Strake at Grand Central in Conroe – 317 units
- Urban Oaks in Conroe – 218 units
- The Doral in Loredo – 424 units
- Bungalows at North Hills in El Paso – 342 units
“There is no arguing the growth and success of Texas. We’ve
wanted to buy there for years, but pricing was too high and didn’t
align with our disciplined basis focused investment philosophy.
This correction is advantageous for properly funded investors who
are able to hang tough for a couple years,” concluded Sharp.
About Hamilton Point Investments Hamilton Point
Investments LLC (“HPI”) is a leading real estate investment owner
and manager with a portfolio spanning multifamily properties,
student housing, hotels, and manufactured housing communities. HPI
deploys capital raised through investment funds from accredited
individual investors via a network of independent broker-dealers
and registered investment advisors. Founded by J. David Kelsey and
Matthew A. Sharp in 2009, the firm has acquired more than 150
properties for over $3.5 billion since inception.
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version on businesswire.com: https://www.businesswire.com/news/home/20240702315809/en/
For Hamilton Point Investments: Maya Bogle
mbogle@sloanepr.com