New York City-based Lone Star Capital Group recently purchased Parc at Champion Forest, a workforce housing community in the Champions area of Houston.
Built in 2000, the garden-style apartment property allows the buyer to implement a greater value-add program by renovating additional units, a press release noted. The seller, Commerce Capital Partners, recently upgraded 95 of the community’s over 200 units.
Ryan Epstein and Jennifer Ray of Walker & Dunlop Investment Sales represented the seller, while Paul House and Larry Perez of Walker & Dunlop’s Capital Markets group secured the financing for the buyer. The teams coordinated with several parties on behalf of their clients, including agencies and local government entities, to ensure compliance with the property’s existing Land Use Restrictive Agreement (LURA), which is set to expire in May 2023.
“With steady population growth and employment growth, Lone Star Capital remains bullish on Houston multifamily, particularly workforce housing such as Parc at Champion Forest,” said Lone Star Capital’s Rob Beardsley. “We are excited to build from the seller’s successful renovations at Parc at Champion Forest, which is well-poised to benefit from strong demand and limited new supply in the submarket. Parc’s suburban setting coupled with its convenience to jobs and retail make it a dynamic investment for either short-term value-add or longer-term yield.”
Situated along Bammel North Houston Road, Parc at Champion Forest is a three-story multifamily community comprising 112 one-bedroom units, 108 two-bedroom units and 12 three-bedroom units.
“With the extreme demand for affordable housing, Parc at Champions Forest will continue to service the community it has for years as upgrades are completed,” said Epstein. “The community is also an excellent investment opportunity, given its high-visibility location in Houston, strong value-add potential, and LURA expiring in less than two years. Walker & Dunlop’s Houston Multifamily Investment Sales Team exclusively listed the property for our client and helped to find the perfect buyer looking for long-term stability, future rent growth and value appreciation.”