Hines Sells Three Assets in Houston Multifamily Portfolio

(HOUSTON) – Hines, the international real estate firm, today announced the disposition of three multifamily assets – Alys Crossing in Cypress, Texas; Stone Loch in Tomball, Texas; and The Rosemary in Humble, Texas – to Kushner Company. Financials on the sale were not disclosed.

Alys Crossing is a luxury multifamily apartment located in the upscale community of Cypress Creek Lakes. Units feature high-end finishes like quartz countertops and stainless-steel appliances while the entire complex features shared amenities including a resort-style pool with gas-BBQ grills, indoor golf simulator and a clubhouse with co-working space.

Stone Loch, another luxury multifamily property, is in Tomball and conveniently located near Highway 99 and 249. Units include high-end finishes such as stainless-steel appliances and chef-inspired kitchens with quartz countertops. Apartment community amenities feature a resort-style pool, state-of-the-art fitness gym and resident dog park.

The Rosemary is the last multifamily apartment part of this disposition. The complex features curated interiors including private yards, detached garages, quartz countertops and stainless-steel appliances. Shared apartment amenities include a resort-style pool, state-of-the-art fitness gym, library and resident dog park.

Chris O’Neill, managing director at Hines, said, “We are pleased to have completed the full investment cycle for this Houston focused portfolio. We look forward to continuing our growth in the suburban market through both acquisition and development.”

“We're excited to enter the Houston market by acquiring high-quality assets that are in well thought-out locations in North Houston,” said Riley Wilson who heads Sunbelt acquisitions for Kushner. “This portfolio highlights our continued push to enter new, high-growth markets and our desire to acquire assets that are well-positioned in their respective submarkets.”

All three assets were managed and leased up by Willowick Residential (“Willowick”), Hines’ boutique multifamily property management firm. Willowick was brought on shortly after Hines developed all three properties to elevate the standard of living within these communities. With this disposition, the three properties represent Willowick’s first opportunity to successfully lease up and sell three high-performing, stabilized assets. Founded in 2019, Willowick currently manages over 6,500 units.

“We are proud of the role Willowick Residential played in this disposition and look forward to imparting our depth of experience and expertise in other markets and for future assets in our portfolio,” said Lisa Newton, senior vice president of multifamily operations at Hines.

Hines launched its U.S. multifamily platform in 2011. Since then, the firm has invested nearly $2.3 billion in the product type and completed 32 apartment communities representing 10,401 units. Hines has an additional 29 projects underway representing 12,469 units. In 2017, Hines developed a researched based strategy focused on suburban multifamily development citing untapped demand in specific suburban markets throughout the US Southwest. The study of Houston indicated strong opportunities in the growing submarkets of Tomball, Atascocita, and Cypress. “It has been incredibly encouraging to see Hines and our investors capitalize on the successful execution of this strategy so quickly after our mobilization into the suburban space,” added O’Neill.

Senior Managing Director Todd Marix and Chris Curry, along with Managing Directors Jeffrey Skipworth, Joey Rippel and Chris Young and Director Kyle Whitney of Berkadia Houston represented Hines in this transaction. Managing Director Laura Cathlina of Berkadia Chicago secured acquisition financing on behalf of Kushner.

“These best-in-class properties have had impressive lease-ups and are strategically located in growth corridors with affluent demographics and highly ranked school districts,” said Todd Marix. “All three submarkets are ranked in the Top 10 in Houston for overall performance. Their strong demographics underscore rent growth opportunities in the future, and the similarities of the three properties will offer Kushner economies of scale in maintaining operating expenses going forward.”

About Hines

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 255 cities in 27 countries. Hines oversees investment assets under management totaling approximately $83.6 billion¹. In addition, Hines provides third-party property-level services to more than 367 properties totaling 138.3 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,486 properties, totaling over 492 million square feet. The firm currently has more than 171 developments underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information. ¹Includes both the global Hines organization as well as RIA AUM as of June 30, 2021.

About Willowick Residential

Willowick Residential, a subsidiary of Hines, the international real estate firm, is a multifamily property management firm. The firm was founded to provide a tailored, bespoke alternative for asset/property management. Willowick is small and agile but powered by a significant amount of experience and a commitment to being the best in an industry ready for a premier service provider. Launched in early 2020, Willowick Residential is currently managing the following Hines properties: Maple Terrace and The Victor, Dallas; Venue Museum District and Tinsley on the Park, Houston; Wolf Point East and Wolf Point West, Chicago; The Rosemary, Tomball, TX; Stone Loch, Humble, TX; and Alys Crossing, Cypress, TX.

About Berkadia®:

Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.

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