Cardone Capital acquires Heights Waterworks and 15th Street Flats, two Class A assets with a combined 646 units in the historic Houston Heights neighborhood
Berkadia Institutional Solutions, powered by Moran, announces it has arranged the sale and financing of The Heights Collection, two brand new, trophy-quality residential properties with a combined total of 646 units located in the historic Houston Heights neighborhood of Houston, Tex.
Senior Managing Director Chris Curry and Todd Marix, along with Managing Directors Jeffrey Skipworth, Joey Rippel and Chris Young of Berkadia Houston, represented the seller, Alliance Residential Company.
Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins of Berkadia Boca Raton, along with Managing Director Brad Williamson of Berkadia Miami, secured acquisition financing on behalf of Discovery Channel’s Undercover Billionaire Grant Cardone, CEO of Cardone Capital, of Aventura, Fla.
Cincinnati-based Eagle Realty Group, on behalf of Western & Southern Financial Group, originated the loan. The loan has a six-year term, with three years interest only at a fixed rate, and a floating rate thereafter.
“The Heights Collection offered Cardone Capital a unique opportunity to add two brand new multifamily assets, consisting of 646 units both purchased below replacement cost, to their already existing eight hundred units in Houston,” said Curry. “Because these two properties stand apart from their peers in terms of location and overall quality, the new ownership has an opportunity to create value in a market that is on the upswing with the return of renters to the urban core.”
Added Sinberg, “This is the finest and newest asset in one of the premier submarkets in Houston. Along with Cardone Capital’s extensive resume and reputation, we saw tremendous demand from the institutional debt markets which enabled us to select a portfolio lender to work with our collective team in crafting a bespoke loan structure that is highly structured to match Cardone’s investment strategy of ten thousand units.”
Kelcie Berry, Director of Asset Management at Alliance Residential Company, also noted, “When we were designing these two assets, our goal was to combine modern amenities with walkable locations. The result is two irreplaceable assets in a high-growth corridor with ample room for rent growth. We are proud of the final product and wish the Cardone team well on the next steps.”
Located at 1414 North Shepherd Drive, the 337-unit, eight-story 15th Street Flats was completed in 2021 and offers one- and two-bedroom units ranging from 638 to 1,273 square feet. Individual units feature wood-plank style flooring, full-sized washers and dryers, built-in mudrooms, LED lighting and ceiling fans, plush carpeting in bedrooms, soaring 10-foot ceilings, white Carrera-style quartz countertops, chrome plumbing fixtures, stainless steel sinks and private yards. Community amenities includes the only rooftop pool in the Heights, social and business lounges, a private dining room, outdoor living spaces with alfresco dining, an outdoor kitchen with a pizza oven, lush landscaping, direct-access elevators and a beautiful courtyard.
Located at 515 West 20th Street, the eight-story Heights Waterworks was completed in 2020 and offers 309 units of one- and two-bedrooms, ranging from 600 to 1,265 square feet. Individual units feature stainless steel appliances with gas stoves, full-sized washers and dryers, white and grey shaker style cabinetry, quartz countertops, designer wood-style plank flooring, spacious closets, LED lighting, ceiling fans, electronic locks and sweeping views of Houston Heights. Community amenities include an athletic gym, an outdoor grilling kitchen, a pool with shaded cabanas, a music lounge, controlled-access bike storage, an indoor pet spa with a salon, access to a bike trail, and an expansive resident area with a library, computer lounge and a grand salon.
Houston Heights is one of Houston’s most iconic locales with an affluent housing market and a walkable environment, advantageously positioned close to the city’s largest employment centers in Central Houston and the largest medical complex in the world. People living in the Heights can walk to an average of three restaurants, bars, and coffee shops in five minutes. It is Houston’s largest, intact historic neighborhood known for its eclectic array of boutiques, antique shops, restaurants, arts markets, and neighborhood festivals.
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.