HOUSTON, TX - Sentinel Real Estate Corporation announced that it has acquired Three Thousand Sage, a 324-unit mid-rise apartment community in Houston. The transaction presented an opportunity for Sentinel to acquire a high-quality asset where it can leverage its extensive operational expertise to implement a capital improvement program intended to enhance income and the value of the investment.
Three Thousand Sage is optimally located in the desirable Galleria/Uptown submarket of Houston, an affluent area that is often referred to as the city’s second downtown. The property is located in close proximity to the area’s major employment hubs, including the Uptown Houston office submarket, the 11 million-square-foot Greenway Office Park, and Downtown Houston, which are home to hundreds of employers – including 10 of the city’s 26 Fortune 500 companies – representing hundreds of thousands of jobs. Texas Medical Center, the largest medical center in the world with 106,000 direct employees and 72,000 students, is also within five miles of the property. Three Thousand Sage is located two blocks from the Houston Galleria Mall – the largest mall in Texas – and provides convenient access to Houston airports and a variety of retail, restaurant and entertainment options via the I-610 Inner Loop, Westpark Tollway and I-69.
“In Three Thousand Sage, we have recognized an opportunity to acquire a high-quality asset in a desirable market that has seen significant increases in demand driven by consistently strong job and population growth,” said Michael Streicker, President of Sentinel. “Multifamily vacancy rates are currently at their lowest point since 2015, and the region saw 20,000 net move-ins in the first half of 2021 – the strongest two quarters on record. The property is well positioned to capitalize on that demand, ideally situated in the heart of several high-profile employment hubs in Houston. This acquisition exemplifies our proven investment strategy, and we look forward to making improvements that create an even better place for our residents to live.”
Built in 2004, Three Thousand Sage is a four-story, 324-unit apartment complex comprising one- and two-bedroom units averaging 1,006 square feet. Each residence features high-quality finishes such as nine- and 10-foot ceilings, granite countertops, large garden tubs, hardwood-style floors, walk-in closets, full-sized washer-dryers and intrusion alarms. Select units include stainless steel appliances, a private patio or balcony, a private office with built-in computer desk, glass front cabinets, double vanities in the bathrooms and travertine flooring. Community amenities include two resort-style pools, a cabana with gas grills, a well-appointed fitness center, two resident lounges, and an electronic parcel locker system.
Sentinel intends to realize additional value through a capital improvement program that will both enhance the shared amenities – including the pools, lounges, lobby and fitness center – and upgrade all interior finishes to include stainless steel appliances and wood-style flooring. The firm will also leverage its deep institutional knowledge and experience owning and operating multifamily assets to explore additional opportunities to improve the resident experience.
Sentinel has been active in the Houston market throughout its 51-year history, having owned and operated 28 multifamily properties in the area, comprising over 9,200 units. Since its inception, Sentinel has acquired a national portfolio of multifamily real estate on behalf of domestic and international institutions. The firm will continue to leverage its market expertise and deep industry relationships to identify attractive investment opportunities throughout the region.