A fund sponsored by CBRE Global Investors has acquired a 674-unit apartment complex in downtown Houston. The property, known as Skyhouse Downtown, spans 528,338 square feet across two 24-story residential towers. The complex also includes two structured parking garages. The acquisition is part of the fund’s broader strategy to acquire a property within a target U.S. multifamily market that CBRE Global Investors has identified in its “Winning Cities” program, which identifies metro areas that are expected to achieve long-term, resilient real estate performance.
Skyhouse Downtown, located at 1625 and 1725 Main Street, is situated just off Texas State Highway 49 and Interstate 69. The property is walkable to several restaurants, shops and entertainment venues and is less than a 20-minute drive to Houston’s Hobby Airport and a 30-minute drive from George Bush Intercontinental Airport.
Skyhouse Downtown was completed in 2016 and, in addition to high-end residential units and resident amenities, includes 10,173 square feet of ground-floor retail space that was 88 percent leased at the time of close. Apartments feature luxury finishes, floor-to-ceiling windows and private balconies with skyline views. The extensive resident amenity collection includes an indoor/outdoor rooftop amenity suite with a pool, a fitness center, grilling stations, a firepit, a lounge area and a catering kitchen, and two tennis courts, which sit atop the dual parking garages. CBRE Global Investors plans to implement its Above & Beyond resident amenity program at the property, which is expected to increase customer service to help satisfy the resident base.
“The broader Houston apartment market is recovering from a cyclical decline spurred by outsized supply that delivered against the backdrop of an economic slowdown in the energy sector and disruption from Hurricane Harvey,” said Michael Gallagher, senior director of multifamily acquisitions for CBRE Global Investors. “With the third-highest job growth in the country and top-10 population growth projected through 2024, the Houston apartment market is expected to grow at a time when national growth is decelerating. Additionally, downtown Houston has a diversified employment base and is in the midst of an urban renewal driven by the City’s Downtown Living Initiative.”
