2411 Washington Avenue

Houston, Texas

Historical Transaction

Units: 222
NRSF: 202,596
Total Capital: $32.9 million
Equity Invested: $11.2 million
Status: Sold
Realized Multiple: 2.6x
Realized IRR: 37%

2411 Washington is a 222-unit podium design apartment project with 4 stories of apartments over a 2 level concrete parking structure, situated on 2.46 acres of land (density of 90 units to the acre). The community offers an award-winning clubhouse design with leasing center, exercise facility, coffee house, and cyber lounge. The infinity-edge swimming pool and cabana are located on the podium level and enjoy commanding views of the downtown skyline. 2411 Washington is located on an exceptional infill site with convenient access to downtown Houston and the city’s highway network. The site was acquired, developed and stabilized over a 42 month time period and sold in June, 2014.

Opportunity

  • 2411 Washington presented the opportunity to take advantage of decreased land prices in an exceptionally well located urban infill site, build with low construction costs due to decreased demand, and exit at a time coinciding with an economic and market recovery.
  • Premier location and irreplaceable site one mile from the CBD, with exceptional accessibility via its location at the corner of Washington Avenue and Sawyer Street that provides direct access to Memorial Drive, and is one‐half mile from Interstate 10, one mile from Interstate 45, and four miles from the Interstate 610 Loop.
  • The land acquisition cost of $4.10 million ($38 per land SF) was approximately one-third below the price of comparable sites put under contract within the prior 12 to 18 months.
  • The submarket and competitive set was experiencing a sharp increase in occupancy and solid growth in effective rent, with the Washington Avenue corridor poised for future positive growth during the planned holding period.
  • Capitalize on opportunity for compressed lease-up timeline given the attractiveness of the project’s infill location and proximity to major employment centers, public transportation, retail facilities, restaurants, and entertainment venues.