Hamilton Point Investments (HPI), a real estate private equity firm, has acquired a four-property Houston apartment portfolio for $195 million.
The portfolio encompasses 1,174 apartment units in properties which were built in 2022. The properties were purchased from a Texas-based multifamily developer at a cost per unit of $166,100.
The four properties are the Prose Champion in Houston (360 units), the Prose Copperfield in Houston (361 units), the Prose Cypress Creek in Cypress (240 units) and the Prose Franz in Katy (213 units).
“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.”
Photo: Prose Copperfield in Houston
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