We’ve acquired The Townhomes at Woodmill Creek, a stabilized, 171-unit apartment community in The Woodlands, Texas, for a purchase price of roughly $55 million. (In the world of real estate investing, “stabilized” refers to a property that is almost completely leased up — typically an occupancy rate over 90%, therefore producing a stable flow of rental revenue.) The Woodlands is a suburb of Houston, located about 40 minutes north of downtown.

At a strategic level, this investment fits within our affordably-priced Sunbelt apartment / rental housing thesis. 

Business plan

Construction on the community was completed in 2016, and at the time of our acquisition, the 171-unit community was approximately 91% occupied.

Our intent with this and other similar investments — including both single-family rental home communities and some apartment communities — is to be a long-term investor, building a scaled portfolio that generates consistent rental income, while at the same time positioning ourselves to capture what we believe will be outsized price appreciation thanks to a confluence of demographic factors driving demand across the Sunbelt.

Since this is new construction, we don’t anticipate committing significant capital to improvements for the foreseeable future.