573-unit apartment project targets middle-income Houston families
Houston is about to get an influx of new apartment units priced for the average worker in the region with a 573-unit project gets underway just west of the Energy Corridor.
Miami-based developer Resia is progressing on the community, called Resia Ten Oaks, after securing a $96.5 million loan for the project, at 18036 Park Row, about 22 miles west of downtown Houston and 9 miles east of Katy.
Leasing expected to start next quarter at the development, near Houston Methodist West Hospital, and construction is to be completed in the second quarter of 2024.
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It’s the first Houston project for Resia, which has eight others underway across the Sun Belt as it strives to provide quality housing for residents getting priced out by rising rents, the company said.
That is somewhat of an unusual approach in an era when most market-rate multifamily construction is chasing the luxury renter.
Although Resia Ten Oaks isn’t considered an affordable housing project, the developer aims to attract middle-income families, young professionals and essential workers by charging rents below the Houston market average for new construction, Carlos E. Gonzalez, Resia’s chief investment officer, said in an email.
“No units earmarked units for ‘affordable,’ but the units are considered workforce since we will be charge below the median rent of the new towers in downtown or in the overall Houston MSA,” he said. “We will be charging right in the middle of what our nearby competition is charging, however the pitch is that our product is brand new versus the existing product in the area.”
Average rents across Houston are about $1,250 among all apartment types, according to commercial real estate firm Transwestern. Average apartment rents are about $1,309 for the broader Energy Corridor/CityCentre/Briar Forest market and about $1,459 in the Katy/Cinco Ranch/Westchase market near the development, according to Transwestern.
The Resia Ten Oaks is rising in a hotbed of multifamily growth. The broader Energy Corridor/CityCentre/Briar Forest market has about 952 units under construction, while the Katy/Cinco Ranch/Westchase market has about 3,693 apartments under construction, according to Transwestern.
Gonzalez said Resia was attracted to the area because of the abundance of nearby jobs in the Energy Corridor and medical campuses.
Resia Ten Oaks is expected to encompass a mix of one-, two- and three-bedroom apartments ranging between 612 square feet to about 1,040 square feet.
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The 573 units will be spread across three 12-story high-rise buildings. Apartments will feature modern finishes, stainless steel appliances and in-unit laundry. With a design by architecture firm Gensler, amenities include granite countertops, stainless steel appliances, in-unit laundry, and a multipurpose clubhouse with a swimming pool and fitness center.
“We have confidence in our project due to the differentiation this project will offer to the community, and the excellent location across from the hospitals and medical campuses,” Gonzalez said. “This is the only high-rise multifamily building outside of downtown, as well as the only concrete multifamily building structure, which allows for more durability. Further, we will be offering price points that can compete with the comparable projects coming online.”
Resia is planning its second Houston-area project, a 240-unit development at 20146 Harvest Landing Lane in Cypress that is planned to break ground this quarter.
For the Resia Ten Oaks project, the company worked with Santander Bank and Valley Bank to secure the $96.5 million in financing, and Artemis Real Estate Partners provided preferred equity, according to Resia.
