Disrupt Equity Closes On a $70M 387 Unit Apartment Community in Houston, TX

December 28, 2021
December 28, 2021 disrupt

Disrupt Equity Closes On a $70M 387 Unit Apartment Community in Houston, TX2 min read

Disrupt Equity, a real estate syndication company and growing leader in the investment of high-quality rental housing, has announced the closing of Cheval Apartments, a 387 unit $70M class A multifamily asset in Houston, TX. Disrupt Equity has rebranded the property to The Heights on Katy Apartments upon closing. 

The multifamily property was acquired from Baron Properties. “The deal was purchased at a very attractive price and yields a very strong projected return to our capital investors,” said Feras Moussa, Managing Partner at Disrupt Equity. 

Heights on Katy Apartments was built in 2005 and features 387 one- to two-bedroom units. Current ownership has upgraded 215 units with new carpet, paint, stainless steel appliances, a modern lighting package, tile backsplash, granite countertops, and new kitchen and bathroom fixtures. These units are achieving rent premiums of $150-$200+ per month compared to 172 of the remaining classic units. Although Heights on Katy is considered a Class A property, Disrupt Equity identifies the value add multifamily opportunity to continue the upgrade program currently in place in order to bring interiors in-line with newer properties in the immediate submarket. 

The Heights on Katy community offers a variety of resident amenities, including a resident clubhouse and coffee bar, tennis and basketball court, a sand volleyball court, two resort-style swimming pools, outdoor kitchen areas, a game room, library, fitness center, spa center, package concierge, and a business center.  

“Heights on Katy Apartments is built to a high-quality standard. The asset is a well-constructed resort-style complex and is highly amenitized. It is built by a developer known for quality craftsmanship,” Said Ben Suttles, Managing Partner at Disrupt Equity. 

Heights on Katy is a quality asset centrally located within Houston’s growing memorial and spring branch submarket. The property is located inside the 610 Loop in one of Houston’s most heavily improving pockets, less than 2.5 miles from both the Galleria area, the business center of Houston, and Memorial Park, which is the largest and most famous park in Houston. 

The asset will be managed by Disrupt Management, Disrupt Equity’s in-house multifamily property management firm that currently manages over 1,500 units in the Houston market. The property is located within 15 minutes from both the Disrupt Equity and Disrupt Management headquarters. 

“This is an outstanding addition for Disrupt Equity as we continue to see compelling investment opportunities across the sunbelt,” said Feras Moussa, Managing Partner at Disrupt Equity. 

This closing marks Disrupt Equity’s 5th multifamily acquisition in 2021 and has added over $200 million in AUM to the growing Disrupt Equity portfolio.

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