Fairstead closed a $20 million investment for the acquisition and rehabilitation of Sunflower Terrace Apartments, a multi-building housing complex in Houston.

In partnership with R4 Capital, its mortgage lending affiliate R4 Capital Funding, and the Houston Housing Finance Corporation (HHFC), the property consists of 160 affordable housing units under a project-based Section 8 contract. The project will be reserved for low- and very low-income families, with rents capped at 50% Area Median Income (AMI) for half of the units and at 60% AMI for the remaining units.

The Sunflower Terrace transaction marks Fairstead’s third community in Houston and affirms the company’s ongoing commitment to delivering quality affordable housing in cities with the greatest need. Located at 5050 Sunflower Street in the city’s southern Sunnyside neighborhood, the property expands Fairstead’s footprint south of its existing Coppertree Village and Yale Village Apartments, which have collectively received more than $40 million in rehabilitation investments since 2022.

With the acquisition of Sunflower Terrace, Fairstead assumes the role of owner alongside its valued partner HHFC. Fairstead will also take over duties as developer and property manager. Today, Fairstead’s national footprint exceeds 25,000 affordable homes across 28 states, with its Houston portfolio set to grow to over 1,000 in-market units by the end of 2025. 

Originally constructed in 1971, the Sunflower Terrace Apartments community features a blend of 10 two-story and three-story buildings spread across seven acres. The property consists of 24 one-bedroom residences, 72 two-bedroom residences, 52 three-bedroom residences, and 12 four-bedroom residences. Amenities at the community comprise of a clubhouse, on-site laundry facility, playground, learning center for resident services, and a business center, all designed to offer all-encompassing support to residents. 

Comprehensive renovations include the common areas, unit interiors, building exteriors, mechanical systems, and site infrastructure to improve building operating efficiencies and quality of living for the current residents. In-residence upgrades will include new kitchens with updated appliances, countertops, and cabinets, while bathrooms will be upgraded with new fixtures and faucets, lighting and electrical, and more. 

Construction at the Sunflower Terrace Apartments will commence in the summer of 2025, with completion projected for August 2026. 

In today’s industrial real estate market, delivering strong, risk-adjusted returns isn’t just about buying right or riding cap rates, it’s about execution, operational discipline, and a cross-functional approach that drives value throughout the life of an asset.

Balance and Diversification Absorb Volatility

Smart portfolio construction demands more than just a focus on location. While real estate fundamentals will always value geography, truly resilient portfolios are built with broader strategic intent. Factors like asset mix, tenant profile, and market exposure play a critical role in weathering economic cycles.

Portfolios that thoughtfully combine single- and multi-tenant assets across both infill and geographically diverse markets tend to outperform through periods of leasing volatility and shifting interest rate environments. This diversification not only enhances stability but also position owners to capitalize on emerging market dynamics.

Clear Height Properties recently put this strategy into action through the acquisition of a five-building, 231,000-square-foot industrial portfolio in the Cincinnati metro area. This expansion reflects a broader investment thesis: targeting stable, under-recognized submarkets where tenant demand is steady and acquisition pricing remains disciplined. The Cincinnati acquisition not only broadened geographic exposure but also aligned with Clear Height’s long-term goals for leasing velocity and portfolio balance.

In short, smart portfolio construction isn’t about chasing the obvious, it’s about building for resilience and opportunity in any market condition.

Execution Is Where Returns Are Realized

Acquiring an asset is only the beginning. Real value is created when operators engage proactively with tenants, identify opportunities for improvement, and structure deals to serve both short-term needs and long-term performance.

Through Q2 2025, Clear Height executed 80 lease transactions totaling 426,000 square feet. Many of these transactions involved proactive tenant discussions with creative structuring or in-house construction support. These were not passive renewals. In fact, they were the result of deliberate, integrated execution between asset managers, property managers, and leasing partners.

Integrated Teams Drive Strategic Results

Siloed decision-making often leads to inefficient capital deployment and missed opportunities. When leasing, asset management, and property operations operate in isolation, critical insights fall through the cracks and strategic momentum stalls.

Organizations that embrace cross-functional integration are better equipped to capitalize on opportunities in real time with precision. When teams are aligned, decisions move faster, and execution improves. Then value is unlocked more efficiently through proactive lease structuring, targeted capital investments, or operational agility.

In today’s environment, speed and alignment are not just operational strengths, they’re strategic imperatives.

For example, Clear Height’s vertically integrated platform provides seamless oversight across a diverse portfolio. By leveraging expertise in asset management, leasing, property management, and project & development services, we can deliver exceptional customer service while driving strong property performance and investment results.

Agility Matters in a Shifting Market

With capital markets tightening and tenant needs evolving, it’s essential to deploy capital tactically to provide optionality. Owners that position assets for flexibility, rather than perfection, are better equipped to attract modern users at premium market rents.

At a 290,000-square-foot facility in Columbus, OH, Clear Height initiated a targeted capex plan immediately upon acquisition. The upgrades improved the functionality without overbuilding, ultimately resulting in a long-term lease and a disposition that generated a compelling IRR and equity multiple.

Focus on the Right Metrics

Traditional KPIs like occupancy and rent only tell part of the story. More advanced operators track tenant retention costs, net effective rents, asset utilization and capital ROI to make smarter, more strategic decisions that reflect real asset performance. Emphasis on these key metrics allow operators to rapidly make data-driven decisions aligned with strategic objections.

Relentless Ownership Mindset

Ultimately, industrial real estate rewards those who stay close to the asset. An ownership mentality focuses on being decisive, transparent, and proactive no matter the issue. Simply put, it is about investing in both relationships and buildings. These are the key differentiators that consistently set successful operators apart.

Industrial real estate remains one of the most resilient and high performing asset classes, but in today’s market, returns are not given. They are earned through execution, agility, and alignment. For operators in the industry, that is not just a challenge, it is a competitive edge.

Kevin Bufalino is Managing Director of Asset Management at Clear Height Properties, a Chicago-based real estate investment and operations firm focused on light industrial assets across the Midwest.

Avison Young closed the sale of a five-story, 151,340-square-foot office building at 17787 Waterview Parkway in Dallas.

The property is just steps from the main campus of University of Texas at Dallas.

Avison Young Senior Vice Presidents Bruce Butler, Susan Gwin Burks, and John Bowles represented the seller, CFT NV Developments, LLC. The buyer was Board of Regents of the University of Texas System/University of Texas at Dallas.

Built in 1994 and situated on 5.22 acres, the well-maintained property was delivered vacant and features large floor plates and 477 surface and covered parking spaces. It is conveniently located near SH-190 to the north and is minutes to I-75 to the east.

StreetLights Residential broke ground on the third phase of its luxury multifamily development within Viridian, a master-planned community in Arlington, Texas.

Situated on 2,000 acres between Dallas and Fort Worth, Viridian offers a unique urban refuge with over 500 acres of parks and open space, another 500 acres of protected wetlands and open water, and miles of nature trails, making it a haven for active living and natural beauty.

StreetLights, a Dallas-based, design-focused national developer of multifamily and mixed-use communities, has already completed the first two phases of the project—The Jackson and The Louise. The third phase builds on the momentum of the initial deliveries and adds another layer of architectural sophistication and community integration along Lake Viridian’s scenic shoreline.

The new phase will feature a mix of studio, one- and two-bedroom residences, along with 68 townhomes—many with direct access to green space and lake views. Residences include high-end finishes such as Smart Fabita cooktops, custom cabinetry and designer hardware, under-cabinet lighting, and elaborate entryways. Select homes also feature screened-in porches, under-counter beverage centers, and lake-facing balconies.

Architecturally inspired by classic lake house design with old-world European elements, the community features a series of buildings arranged to maximize views over the central pool courtyard and out to the Lake Viridian shoreline. Residents will enjoy an expansive fitness center that opens to a fitness lawn, a co-working lounge with private work suites, and an event space connected to outdoor dining, grills, and gathering areas. The clubhouse includes a billiards room, card lounge, and direct access to resort-style cabanas and daybeds surrounding the pool.

Viridian’s central location provides residents with convenient access to major employment centers, DFW Airport, and premier entertainment destinations including Texas Live!, Globe Life Field, and AT&T Stadium—all just minutes away.

StreetLights Creative Studio is the architect of record and is also leading all interior design efforts. SLR Construction, LLC is serving as the general contractor.

The first two phases at Viridian, The Jackson and The Louise, are stabilized. Other StreetLights’ Dallas/Fort Worth developments include The Canals at Grand Park, a three-phase master-planned neighborhood in Frisco consisting of The Kathryn, The Maxwell and The Margo communities; The Christopher, a 23-story residential high-rise located in Victory Park; The McKenzie, a 22-story residential high-rise in the Knox-Henderson neighborhood; The Hamilton, part of The Epic development in Deep Ellum; The Oliver at The Central; The Galatyn, a sister property to The McKenzie; The Austin at Trinity Green;  The Case Building, the first high-rise in Deep Ellum; the award-winning The Jordan; The Kelton in Fort Worth; One Dallas Center, an adaptive reuse high-rise; and The Taylor, StreetLights’ first project in Dallas. For more information about StreetLights’ communities, visit streetlightsres.com.

The demand from renters for multifamily units remains strong across the United States, according to the latest research from Lee & Associates.

In its second quarter 2025 multifamily report, Lee & Associates said that net absorption during the quarter in the United States totaled 136,007 units. That big number isn’t unusual: Lee & Associates said that during the last six quarters, renters have leased 816,814 multifamily units across the country.

This strong leasing activity has brought vacancy rates down. The report says that the U.S. multifamily vacancy rate fell 10 basis points to 8.1% as of the end of the second quarter. This largely due to the rising demand for Class-A apartment units, a segment of the multifamily market in which demand still exceeds supply.

U.S. rental demand stood at 267,273 units in the second quarter. This follows the leasing of 548,911 rental units in 2024, the second-highest amount on record. This can be partly attributed to the members of Gen Z who are entering the prime apartment rental age. At the same time, a growing number of Baby Boomers are reaching an age in which renting is becoming a good option.

New construction activity has tapered off, though, in this sector. Lee & Associates reported that net apartment deliveries have declined for three consecutive quarters, falling nearly 30% to less than 130,000 units in the first quarter. And forecasts show that fewer than 80,000 multifamily units are scheduled for delivery in the fourth quarter of this year.