Fairstead closed the $242 million acquisition and rehabilitation of Haverstock Hills Apartments, a 700-unit affordable housing community in Houston’s East Aldine neighborhood.

Haverstock Hills will undergo sweeping renovations, including in-residence, exterior and common area upgrades, as well as enhanced amenities to modernize the property and improve operating efficiencies. Fairstead will also invest heavily in new safety and security measures across the property to improve resident wellbeing and families’ overall experience. 

The acquisition and rehabilitation of Haverstock Hills reinforces Fairstead’s commitment to creating thriving, affordable communities in high-demand markets where families feel safe, connected and supported. With this purchase, Fairstead’s Houston portfolio now includes nearly 2,000 affordable homes, while its national footprint spans more than 27,000 residences across 28 states.

Located at 5619 Aldine Bender Road, Haverstock Hills comprises 44 two-and three-story buildings spanning 22 acres. Residences include a mix of studios, one-, two- and three-bedroom units. All homes are supported by project-based Section 8 contracts and governed by Low-Income Housing Tax Credit (LIHTC) affordability restrictions. The community is 100% reserved for residents earning 60% and below the Area Median Income (AMI).

Under Fairstead’s ownership and management, Haverstock Hills will undergo a comprehensive rehabilitation that includes: 

• In-unit enhancements: New kitchens with energy-efficient stainless-steel appliances, updated countertops and cabinetry, refreshed bathrooms with upgraded fixtures and faucets, new flooring, freshly painted walls and new LED lighting. 
• Building improvements: Enhanced lighting and electrical systems, window upgrades, façade replacement and repainting and improved entrances.
• Mechanical and infrastructure upgrades: Systems improvements to boost operating efficiency and ensure long-term performance.

Additionally, residents will enjoy new amenities that include an updated community building and clubhouse, outdoor playgrounds, upgraded laundry facilities and a business center for resident services. Rainbow Housing Assistance Corporation, a nonprofit organization that provides service-enriched housing programs for residents, will oversee resident programming. Services will include K-12 after-school programming, financial literacy and health programs, career training and other recreational and social activities. 

Fairstead will also implement significant security upgrades, including increased lighting, cameras, access control and additional on-site security presence, alongside an enhanced partnership with local law enforcement to further improve safety for residents. 

The acquisition of Haverstock Hills Apartments was supported by Fairstead’s long-standing financing partner, PNC Multifamily Capital, as both the debt and equity provider, Harris County Housing Finance Corporation and Rainbow Housing Corporation, who will continue to provide on-site social services.

Eastham Capital closed the disposition of Kensington Crossings, a 254-unit apartment community, and Morgan Bay, a 268-unit apartment community, both in Houston, Texas.

Kensington Crossings was acquired in 2018 and Morgan Bay in 2019, for the portfolio of Eastham Capital Fund V, LP, as a joint venture between Mosaic Residential and Eastham Capital. The sale prices were not disclosed.

Kensington Crossing Apartments includes a mix of one-, two-, and three-bedroom units ranging from 759 to 1317 square feet.  Morgan Bay Apartments includes a mix of one and two-bedroom units ranging from 561 to 1042 square feet.

The team implemented a comprehensive repositioning strategy that significantly enhanced the asset’s profitability.  At the time of disposition, Kensington Crossing was approximately 96.5% occupied, with in-place rents having increased from $1,000 at the time of acquisition to $1,344.   Morgan Bay was approximately 94.8% occupied, with in-place rents having increased from $632 at the time of acquisition to $922.

 JT Magen completed new office space for BRR Architecture at 3218 Manor Road in Austin, Texas.

JT Magen served as construction manager for the 4,117-square-foot buildout, overseeing all aspects from budgeting and scheduling, procurement of materials, managing subcontractors and conducting the final handover. JT Magen collaborated with the rest of the project team –  architect / interior designer BRR Architecture and MEP engineer Salas O’Brien – to deliver a functional, collaborative space that met BRR Architecture’s needs.

BRR Architecture is a national architectural design firm with more than 60 years of experience designing spaces that elevate the everyday experience. The company collaborates with clients across multiple sectors, including retail, hospitality, industrial, mixed-use, multifamily, and office environments. BRR opened their Austin office in 2016. After almost a decade, the firm was ready to expand into a larger space to accommodate its growing team.

The open plan office space spans one floor of the building and features a mix of workstations and private offices, a flex room, a plot room for large-scale drawings, meeting and conference rooms, and a breakroom. A custom hand-painted mural that blends community and office culture and a full kitchen breakroom make the space inviting and unique.   

BY JOE SANTAULARIA, EXECUTIVE VICE PRESIDENT, BRADFORD COMMERCIAL REAL ESTATE SERVICES/CORFAC INTERNATIONAL

Making a real estate investment in a volatile economic environment requires the right timing, pricing, and willingness to act when they align. When it comes to real estate in the Dallas metro, it also requires taking a hyperlocal lens. National, and even regional, dynamics don’t apply neatly to our market. Within each subsector, you can find reasons for optimism and causes for concern. Let’s take a closer look.

Industrial
Industrial has been the darling of real estate investors with the growth of warehouse and distribution and data centers as traditional retail and office declined. However, we’re seeing some softening in larger industrialproduct. Early in the year, it was affecting properties over 200,000SF, now it is 100,000SF and above and leaking into 50,000-100,000. While it remains white-hot for properties under 50,000SF we’re seeing vacancy rates approaching 10% for larger product and repricing for older projects.When spec industrial is priced to sell, it usually means leasing demand is slowing. Developers are taking hits to projected profits, but not real losses asof yet. Breakeven is the name of the game.

Office
Office was the golden asset up to 2016 and started dipping as it was over-invested by investors from outside the real estate industry that had capital to place. Then the COVID pandemic dealt the office another blow in 2020. Las Colinas and downtown Dallas were particularly hard hit.

Now, office is where industrial was in 2011. Investors can find plenty of great B-class assets that can be purchased and revamped to take advantage of some positive shifts in the office class. By working with proven operators, investors can take advantage of opportunities at a lower risk.

Dallas is the number one office relocation market in the U.S., and certain neighborhoods have especially favorable trends. Y’All Street, which is the financial hub that includes Downtown, Victory Park and Uptown, points to the growing influence of Dallas in the financial sector. Goldman Sachs is currently constructing a campus to house their largest workforce outside ofNew York City, which will serve 5,000 employees.

Uptown is garnering the highest rents in DFW at $56/SF for Class AA office.Knox Henderson as $1.0B in new office development; while Victory Park boasts a $3 billion master-planned development with 4,000 new residences.

Residential
Housing is seeing some uneven outcomes from the building boom. In NorthDFW, large development tracts for sale are stalled. Investors’ expectations far exceed what developers can spend. We see an excess inventory of spec houses north of Dallas Metro and out east, leading to new housing developments being repriced. This problem is most keenly affecting the far north of DFW, such as Celina, north of Prosper, east of Lake Ray Hubbard, Rowlett Rockwall, and Fate.

As you come south into the fully developed satellite cities, McKinney, Prosper, Frisco, Mckinney, the inventory wanes due to lack of land sites, and less supply equals steadier values. The unlimited escalation in existing values have ceased. Housing prices in the burbs are stable. South of LBJ is a different story with the exception of housing north of $5.0MM, where pricing reductions are evident.

Conclusion
So, what does this all tell us? You can’t make assumptions about Dallas based on general trends. You have to dig into the subsector and the location and look for evidence of what’s changing and where the opportunities lie. It’s more critical than ever to work with a local brokerage that understands your risk tolerance and timing and can see all the little details that make upthe big picture.

Avison Young has been retained by Thistle Creek Capital as advisor and broker for the sale of 211 North Ervay, a repositioning and adaptive reuse opportunity in Downtown Dallas.

Avison Young Principal Mike B. Kennedy, Principal and Head of U.S. Investment Sales James Nelson, Principal U.S. Investment Sales Erik Edeen and Senior Vice President Sullivan Johnston are leading marketing efforts for the offering.

With strategic proximity to transit, arts and entertainment venues, and direct access to major downtown employment centers, the 184,793-square-foot, 18-story tower at 211 N. Ervay Street offers a rare opportunity to acquire a structure with significant redevelopment flexibility and existing entitlements. Originally constructed in 1958 as an office building and comprehensively renovated in 2014, the property is zoned CA-1, allowing for a wide range of uses including multifamily, hotel, hybrid hotel-apartments, and next generation office concepts. A portion of the ground level is long-term leased to 7-Eleven,

The offering is enhanced by the potential for substantial development incentives, including Historic Tax Credits and Low-Income Housing Tax Credits (LIHTC). These incentives could provide a powerful capital-stack advantage for investors pursuing adaptive reuse strategies (combined potential tax credits in excess of $30 million).

Michael Christensen, Partner at Thistle Creek Capital, commented, “211 North Ervay represents exactly the kind of urban asset we believe in—great bones, irreplaceable location, and multiple paths to long-term value creation. With the Convention Center expansion and continued downtown revitalization, we believe the property is in position for transformative redevelopment.”

211 N Ervay is just blocks from the Kay Bailey Hutchison Convention Center, which is undergoing a $3.7 billion expansion project, further strengthening demand for residential, hospitality, and mixed-use investment in the urban core. Downtown Dallas continues to attract significant public and private infrastructure investment.

Colliers closed the sale of an industrial property at 134 Wilson Road in Humble, Texas.

The seller, Humble Machine Works Inc. and related entities, was represented by Tom Condon, Jr. of Colliers; and Ross James and David Claros of Newmark represented the buyer in the transaction. Closing was coordinated by Jessica Grealish and her team at Alamo Title Company – Houston. 

The asset comprises ±51,951 square feet of office and warehouse space sitting on a ±4.56-acre lot. The site includes multiple buildings constructed between 1960 and 2009 that together offer a variety of configurations and clear-height ranges.  

This property delivers heavy power infrastructure, multiple overhead grade-level doors, extensive yard space, and secure fencing, which are features that support a wide range of uses.