HOUSTON, TX –A partnership between Auerbach Funds and Blue Magma Residential has acquired Park Texas Apartments, a 78,960 Square Foot, 587-unit Class "C" Apartment Community in Houston, Texas. Located at 11911 Martin Luther King Jr. Blvd, Park Texas Apartments currently have 249 uninhabitable units out of 587. These units are in their current condition due to a variety of factors including hurricane damage.
The Partnership plans to make a substantial investment into the rehabilitation of the asset, including repairing the defunct units, renovating the clubhouse, and performing necessary roof and mechanical repairs, landscaping, driveway and common area improvements.
Park Texas Apartments is located approximately halfway between interstate 610 and Sam Houston Tollway, near Hobby Airport in the Southeastern Houston submarket. This immediate area has seen rapid revitalization and growth in recent years. Not only is the site located within a Tax Increment Reinvestment Zone, but the complex will also benefit from several substantial investments in the area including the $44.6 million Veterans Home project and corresponding roadwork extension funded by the State of Texas and U.S. Department of Veterans Affairs, and a $72 million construction project for the new Sterling Aviation High School.
Of the acquisition, Peter Auerbach, CEO of Auerbach funds stated, "We believe that investing in heavy value-add multifamily can be very successful in growing submarkets in established cities like Houston, and are looking forward to contributing to the velocity in the Southeast submarket."
Reuven Oded, CEO of Blue Magma added, "We plan on creating a community by delivering an improved product at market rates, which would provide not only strong returns for the investment, but also enhance the quality of life for our tenants."
Auerbach Funds is a New York-based real estate private equity fund manager with over 2.1 million square feet under management in 8 states throughout the continental US with a total asset value in excess of $250 million. Blue Magma Residential is a Tampa, FL-based real estate investment and management firm with a 20 – plus year track record and over 8,000 apartment units throughout Florida, Georgia, Alabama, Mississippi and Texas.