HOUSTON, TX - 37th Parallel Properties, a Richmond, Virginia-based multifamily real estate investment firm, announced the recent acquisition of Cashel Springs Apartments, their tenth multifamily acquisition in Houston. The Houston metro area has the second fastest growing population in the nation, with a growth rate over 3.5 times the national average. This acquisition is another milestone for 37th Parallel, bringing their total transactions in Houston to over $150 million.
Built in the 1980's, the property features private balconies, walk in closets, a fitness center, clubhouse, detached garages, and two swimming pools.
Cashel Springs presents a unique opportunity for 37th Parallel to acquire an under-improved, value-add asset in one of the fastest growing submarkets in the Houston area at a great cost basis.
"We were able to purchase a high-quality, income-producing asset at an estimated 45% discount to replacement cost and a 19% discount to recent comparable trades," says Dan Chamberlain, Managing Partner and Chief Operating Officer. "The acquisition of Cashel Springs fits well within our strategy of investing in areas with strong demographics and favorable supply demand dynamics. We believe we can reposition the asset and add value through operational improvements and a focused renovation plan. We are excited to grow our presence in Houston and build asset value for our investors."
The acquisition was funded with a blend of 1031 Exchange equity and new investor capital. The investment will benefit from long term, fixed-rate agency debt financing, arranged by Cutt Ableson of Berkadia Commercial Mortgage. 37th Parallel will execute a multimillion-dollar capital improvement program, which will include upgrades to unit interiors, exterior, and common area amenities.