Kastle Assets Acquires 392-Unit Multifamily Property in Houston from Goldcor Capital Partners and Excelsa Properties
Kastle Assets purchases a 392-unit multifamily property located at 4000 Watonga Boulevard in Houston from Goldcor Capital Partners and Excelsa Properties.
Kastle Assets, a real estate investment firm based in New York, has acquired a 392-unit multifamily property located at 4000 Watonga Boulevard in Houston from Goldcor Capital Partners and Excelsa Properties. The property was marketed by Jeffrey Skipworth, Chris Curry, Todd Marix, Chris Young, Joey Rippel, and Kyle Whitney of Berkadia.
The property, which was built in 1978, sits on a 17.5-acre site and features a mix of one-, two-, and three-bedroom units. The property has undergone significant renovations in recent years, including upgrades to the units, common areas, and amenities. The property features two swimming pools, a fitness center, a clubhouse, and a business center.
Goldcor Capital Partners and Excelsa Properties purchased the property in 2016 for 26.5 million and invested approximately 7 million in renovations. The property was sold to Kastle Assets for $58.5 million, representing a significant return on investment for the sellers.
Kastle Assets, which focuses on value-add and opportunistic real estate investments, plans to continue the property’s renovation program and improve the overall tenant experience. The acquisition is part of the firm’s broader strategy to expand its multifamily portfolio in high-growth markets.
The Houston multifamily market has remained strong despite the challenges posed by the COVID-19 pandemic. According to data from RealPage, Houston’s multifamily occupancy rate stood at 94.4% in the second quarter of 2022, up from 93.8% in the same period last year. The average rent in Houston increased by 9.1% year-over-year in the second quarter of 2022, outpacing the national average of 8.4%.
The sale of the 4000 Watonga Boulevard property is a testament to the strength of the Houston multifamily market and the continued demand for well-located, high-quality assets. The transaction also highlights the value of strategic renovations and improvements in driving asset appreciation and generating strong returns for investors.