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A billionaire buyer from Florida has purchased a pair of recently built apartment midrises in the Heights.

Cardone Capital, an Aventura, Fla.-based investment firm led by Grant Cardone, has purchased the 15th Street Flats, at 1414 N. Shepherd Drive, and Heights Waterworks, at 515 W. 20th St. The seller was developer Alliance Residential.

In addition to investing in commercial real estate, Cardone is an author, business coach and star of Discovery Channel’s “Undercover Billionaire” TV show.

Berkadia marketed the portfolio and arranged acquisition financing.

“The Heights Collection offered Cardone Capital a unique opportunity to add two brand new multifamily assets, consisting of 646 units both purchased below replacement cost, to their already existing 800 units in Houston,” said Chris Curry, a broker with Berkadia.

The Heights portfolio hit the market as demand for living in urban areas near shops and restaurants began to rebound after a COVID-induced flight to the suburbs. Heights residents can walk to an average of three restaurants, bars and coffee shops in five minutes, according to Berkadia.

The eight-story buildings contain high-end amenities such as a rooftop pool and outdoor kitchen with pizza oven at 15th Street Flats, and an athletic gym, library and computer lounge at Heights Waterworks.

Rising apartment rents are attracting investors and spurring development. Houston rents jumped 10.7 percent in August compared to August 2020, according to ApartmentData.com.

Apartment deal volume in the U.S. more than doubled to $18.5 billion in August compared to August 2020 as investors chase a limited number of properties, according to Real Capital Analytics.

Strong demand pushed the prices investors paid for apartments up by 14.7 percent year-over-year in August, according to Real Capital Analytics.

Cardone Capital owns and operates 10,000 apartment units and 250,000 square feet of office space across the southeastern U.S. The company acquired the 351-unit Stella at Riverstone apartments in Sugar Land from Alliance Residential in 2019.


Publication: Houston Chronicle

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