November 1, 2023 10:00 AM
Newmark announces it has completed the sale of the Lone Star 3-pack, a three-property multifamily portfolio totaling 673 units across Austin and Houston. The properties include Treehouse, Stonecreek and Waterstone Place. Newmark Vice Chairman Zach Springer, Senior Managing Director Jim Young and Director Carter Mizell represented the seller, Houston-based privately held real estate investment firm Nitya Capital, in the sale to the buyer, Disrupt Equity, a Houston-based multifamily real estate investment firm.
“This portfolio provided investors the opportunity to acquire a sizeable footprint in two major markets, with outstanding upside potential that was attractive to both private and institutional buyers,” said Young. “The transaction was completed via a CMBS loan assumption with loan terms superior to current market offerings. The assets will serve as an excellent addition to the ever-expanding portfolio of Disrupt Equity.”
Treehouse, located at 2501 Wickersham Lane in Austin, spans 12.46 acres and encompasses 297 units. The property is ideally situated within the East Riverside Corridor, offering convenient access to Downtown Austin, Ladybird Lake and Austin-Bergstrom International Airport. Notably, this transaction marks Newmark’s second time selling the asset.
Stonecreek, located at 20000 Saums Road in Katy, boasts 208 units with an average size of 830 square feet; and Waterstone Place, located at 516 Stafford Springs Place in Stafford, comprises 168 units, each averaging 1,030 square feet. Built between 1997 and 2001, both properties benefit from strategic placements within submarkets characterized by robust rent growth and high absorption rates.
All three properties offer value-add potential for enhancements through amenity and interior upgrades, with the majority of the units having undergone recent upgrades to flooring, kitchen appliances and lighting.
“We purchased these properties four years ago and, since then, have implemented significant capex/value add to these assets,” said Nitya Capital Founder and CEO Swapnil Agarwal. “Sales of these exits resulted in above-market returns for the investors in a challenging capital markets environment. Nitya Capital has acquired 129 properties since inception in 2013 and, with these exits, have now sold 77 assets without a single loss.”
The Houston and Austin metro areas rank among the top multifamily investment markets in the U.S., driven by diversified economies, strong job markets, attractive living conditions and rapid population growth. Houston is projected to experience the largest population gain in the U.S. from 2020 to 2025, while Austin has remained one of the fastest-growing metros in the nation for more than a decade.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2022, Newmark generated revenues of approximately $2.7 billion. As of June 30, 2023, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with over 7,400 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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