Heritage At Park Row

Houston, Texas

Historical Transaction

Units: 400
NRSF: 414,600
Total Capital: $34.25 million
Equity Invested: $11.22 million
Status: Sold
Realized Multiple: 1.4x
Realized IRR: 10.7%

The Heritage at Park Row (“Heritage”) is a 400-unit garden apartment project situated on a 19.53 acre site, with approximately 407,036 net rentable square feet, plus a clubhouse with leasing center, and two pools. The property offers seven primary floor-plans, ranging from 714 square foot one-bedrooms to 1,452 square foot three-bedrooms. The units have nine-foot ceilings, crown molding, washer/dryers, and direct access garages in 40% of the units.


  • Heritage was acquired at approximately 75% of replacement cost in one of the strongest employment markets in Texas.
  • What was once a “B” location due to distance from the CBD, has improved to an “A-” location as a result of rapid westward growth along I-10 West through Houston’s “Energy Corridor”.
  • In-place rents approximately 15-20% below market upon acquisition – recapture revenue delta as renovations are made to common area and unit interiors.

Value Enhancement Strategy

  • Ownership is undertaking $3.1 million in capital improvements to reposition Heritage.
  • Implemented selective upgrades that included a comprehensively updated clubhouse, exterior paint, granite countertops, enhanced floor materials, lighting, and hardware, allowing Heritage to be competitive with newer generation Class-A properties – but at a much more favorable basis.
  • Market Rents on renovated units have been raised on average by $125/unit.