Not every multifamily investor has the time to hold onto assets until rents bounce back.
After sharing plans to offload multiple Texas properties over the summer, San Antonio-based Vantage Communities sold Vantage at Tomball, according to a filing with the Securities and Exchange Commission by apartment investor Greystone.
The 288-unit complex was purchased by Houston-based multifamily investor ClearWorth Capital, deed records show. The property at 9102 FM 2920 is about 35 miles northwest of downtown Houston.
Terms of the sale were not disclosed, but the property was valued at $41.8 million last year, according to appraisal district records.
As a noncontrolling equity investor, Greystone invested $11.4 million in the property. It received $14.2 million upon the sale, resulting in a return of $2.8 million. The proceeds will be used to put together other investments.
The return was less than the firm was expecting due to rising insurance costs in Houston and the interest rate environment, Greystone said in a release.
An SEC filing over the summer indicated Vantage was considering selling the property as well as three other Texas apartment communities: Vantage at Fair Oaks and Vantage at Helotes, both in northwest San Antonio and Vantage at Hutto, which is north of Austin.
At the time, Greystone’s investments in the properties were worth $57.4 million, the filing said.
The properties were built between April 2022 and December 2023, part of a historic deluge of supply that hit the Texas Triangle and drove down rents.
Houston’s multifamily market continues to show resiliency as it absorbs thousands of new units. Occupancy rates and rents remained flat last year.
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