Houston, Tx – November 5, 2020 – Houston-based real estate developer, MarketSpace Capital, announced today that they, along with the co-development partner, Three Pillars Capital Group, successfully closed on the acquisition of the Mainridge Apartments and Westridge Gardens Apartments, both adjacent to NRG stadium. The position and purchase price of this portfolio acquisition presents an attractive value-add opportunity with significant upside as a result of the redevelopment opportunities taking place in the NRG / Medical Center submarket.
Mainridge Apartments is a 264-unit property that was built in 1979 and Westridge Gardens Apartments is a 256-unit property that was built in 1978. Both properties offer residents a variety of floor plans with an average unit size of 730 and 777 square feet, respectively. Part of the value-add strategy includes the property exterior, which needs an upgrade to enhance curb appeal. The interior of the units also needs heavy renovation and modernization, and the capital improvement plan will commence immediately and be completed throughout the next 12 to 18 months.
The NRG Portfolio is a 10-minute walk from the Stadium Park metro station on the Purple Metro line, which is only 3 stops (7 mins) from Texas Medical Center (TMC). TMC is the largest Medical Center in the World and becoming even larger, adding nearly 30,000 high paying jobs to the market as it undergoes a current US$1.5 billion expansion. The TMC translational research campus, slated to open in 2022, will serve as a nexus between TMC’s clinical and research campuses. The 37-acre campus will be located east of Bertner Avenue and west of Cambridge Street, extending from Braeswood Boulevard on the north side to just south of Old Spanish Trail.
From a long-term perspective, the NRG portfolio sits within the boundaries of an opportunity zone, a tax increment reinvestment zone as well as a municipal management district and is situated within truly powerful economic development engine of Houston. Consequently, MarketSpace has determined that the NRG portfolio provides a tremendous opportunity for a covered land play. In real estate development, a Covered Land Play comes in various forms, shapes and sizes, but at its core, is when a real estate developer purchases property that is already producing income, yet the developer has a motivation to redevelop the property into something that can generate more operating income, and the land can be repurposed into the highest and best use. In the long term, the developer can convert the property into an alternative use which serves a greater benefit to the community at large.
“We’ve been working on this acquisition since early 2020 and believe this to be an opportunity to bring meaningful improvements, operational efficiencies, and value enhancement in an opportune, yet underpenetrated market of Houston”, says Sohail Hassan, Managing Partner at MarketSpace Capital. “We love the location of this residential development because of the convergence of Loop 610, Main Street, Kirby and the Texas Medical Center, which offers ease of mobility for all of our residents and guests, as well as the proximity to the largest sports facility in the fourth largest city in America” said Dr. Masaki Oishi, Chairman at MarketSpace Capital.
About MarketSpace Capital: MarketSpace Capital is a Private Equity Real Estate Firm that focuses on sourcing value-add commercial real estate investments for our capital partners. Through our relationships, expertise and disciplined, data-driven analysis, our veteran staff has completed over $1 Billion in transactions, and has the capability and experience required to maximize value creation through a comprehensive, programmatic and conservative investment and asset management approach. In addition to producing consistent returns, MarketSpace Capital seeks to create positive economic impact and long-term value for our investors, the properties we invest in, and the communities in which we work.