Argosy Real Estate Partners Invests in The Luxe at Katy
On October 31, 2017, Argosy Real Estate Partners IV, L.P. and its parallel Funds (“AREP IV”), funds managed by Argosy Real Estate Partners, in partnership with The ValCap Group, acquired the Remington Apartments, a 352-unit, 2014-vintage, Class A garden-style apartment community located in the Katy submarket of Houston, Texas. The property, recently rebranded as Luxe at Katy, was acquired in an off-market setting at a favorable cost basis, below comparable trades in the market and at a significant discount to replacement cost.
The Property is located in the Katy submarket of Houston, which is 20 miles west of the Central Business District. Katy has been Houston’s fastest growing submarket over the past decade due to its close proximity to employers located in the Energy Corridor and the highly regarded Katy Independent School District, which U.S. News ranks as the top school district in the Houston Metro. The property features attractive floor plans with nine-foot ceiling heights and modern finishes, and luxurious common area amenities including two pools, a clubhouse with multiple lounges, and a state-of-the-art oversized fitness center. The property was not damaged by the flooding associated with Hurricane Harvey.
Houston’s diverse economy, favorable business environment, low cost of living, and warm climate have made it one of the fastest growing cities in the U.S. over the past ten years. Despite the oil correction in the summer of 2014, the metro added 159,000 residents in 2015 and 125,000 in 2016, ranking #1 and #2, respectively, among all U.S. metros.
The ValCap Group, a vertically-integrated multifamily owner/operator headquartered in San Antonio with an additional office in Houston. ValCap currently owns and operates a total of 21 properties and nearly 5,000 units. The portfolio is concentrated in Texas which includes 12 properties comprising approximately 3,000 units.