apartment report - transwestern · pdf file · 2016-07-181900 west loop south,...

ED CUMMINSSenior Vice President713.272.1288 | [email protected]

TRANSWESTERNHOUSTON MULTIFAMILY GROUP1900 West Loop South, Suite 1300Houston, Texas 77027713.270.7700 | telephone713.271.8172 | facsimiletranswestern.net

Q2.2011Houston

TRANSWESTERN

TheApartmentReport

RENTAL RATES

• The second quarter of 2011 marked the sixth consecutive period of effective rental rate increases since 4Q 2009.

• Average effective rents ended the quarter at $741 per unit ($0.853 per square foot) compared to $734 per unit ($0.845 per square foot) in Q1.

• Rental rates have increased 3.7% over the past three months, 5.0% over the past six months and 3.4% over the past twelve months (on an annualized basis).

• The submarkets registering the highest annual rental rate growth are Woodlands/Far North (8.3%), Greenspoint (7.4%), Katy/Far West (5.3%), Brookhollow (6.6%) and Montrose/Museum District (6.6%).

• Concessions were reported in 59% of the market with the average special offered at 7.8%.

CLINT DUNCANSenior Associate713.270.3316 | [email protected]

LUPE OLIVARESSenior Analyst713.272.1290 | [email protected]

EFFECTIVE RENTS / UNIT - QUARTERLYRental rates shown are effective: net of concessions and electric utility adjustments

EFFECTIVE RENTS / SF - QUARTERLY

Q2.2011SNAPSHOT

RENTS OCCUPANCY ABSORPTION SALES DEVELOPMENTAverage effective rental

rates have increased 3.7% over the past three

months and 3.4% over the past twelve months (on an

annualized basis).

Q2 occupancy rose to 87.2% from 86.6% in the first quarter. The market has posted an

annualized 3.3% increase in occupancy in the past 6

months.

A total of 5,007 units absorbed in the second quarter, down slightly

from and closely trailing the 5,255 unit absorption

results of Q1.

45 transactions closed in the second quarter, a considerable spike from

the 21 reported sales posted in Q1.

24 communities (4,152 units) have recently

opened in the past 12 months, with 17 (3,508

units) under construction and 46 proposed

construction (13,840 units).

$722 $720 $720

$709 $713

$715

$722 $723

$734

$741

$690

$700

$710

$720

$730

$740

$750

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011

$0.834 $0.830 $0.829

$0.817 $0.820

$0.823

$0.831 $0.832

$0.845

$0.853

$0.790

$0.800

$0.810

$0.820

$0.830

$0.840

$0.850

$0.860

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011

We hope you find this report both useful and insightful. Please feel free to contact us if we can assist with your property valuation, rent or sales comparables analysis or any current market trends and information.

We look forward to working with you in the near future.

SUNJAY ARYATransaction Manager713.272.1276 | [email protected]

2

The Apartment Report

THE APARTMENT REPORT•HOUSTON•Q2.2011

Q2.2011Houston

OCCUPANCY

• Houston’s multifamily market averaged occupancy of 87.2% in the second quarter, extending the occupancy gains made in Q1.

• During the past three months, the largest occupancy increases occurred in the following submarkets (figures shown are on an annualized basis):

1) Greenspoint (18.8%) 3) Woodlands/ Far North (8.0%)

2) Tomball/ Far Northwest (10.8%) 4) FM 1960 West/ Steeplechase (7.6%)

• Class “A” properties posted the highest occupancies, averaging 91.9%, followed by class “B” properties averaging 90.7%.

• The top occupied submarkets during Q2 were FM 1960 West/ Steeplechase (94.7%), Montrose/ Museum District (94.2%), Fort Bend (94.2%), Inner Loop West/ Greenway Plaza (93.5%), Heights (93.3%) and Woodlands/ Far North (93.3%).

ABSORPTION

• The first quarter of 2011 posted an impressive 5,255 units of absorption. Q2 results were not far behind, reaching 5,007 units.

• The submarkets posting the highest absorption levels were:

1) FM 1960 West/ Champions (518) 3) Clear Lake (381)

2) Greenspoint (382) 4) Galveston/Brazoria (369)

• Strong apartment demand fueled positive absorption in a majority (33) of Houston’s 41 submarkets.

• The combined 10,262 units absorbed in the first half of the year are almost triple the amount absorbed in the second half of 2010.

APARTMENT OCCUPANCY - QUARTERLY

APARTMENT ABSORPTION - QUARTERLY

85.6%85.3%

84.8%

83.9%

84.6%

85.5%

86.2%85.9%

86.6%

87.2%

82.0%

83.0%

84.0%

85.0%

86.0%

87.0%

88.0%

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011

1,799 2,367

708

(3,726)

4,790

6,372

4,155

(554)

5,255 5,007

(6,000)

(4,000)

(2,000)

0

2,000

4,000

6,000

8,000

1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011

3



Q2.2011Houston

HOUSTONAREASALES

APARTMENT SALES• Second quarter transactions picked up significantly from Q1 with a total of 45 sales compared to the 21 closings reported in Q1.

• The property trades represented all asset classes, as well as stabilized and distressed sales.

Property Submarket Units Built Sale Date

Belle Chase Pasadena/Deer Park 56 1963 Apr-11

Northlake Manor Eastex Freeway/Near Northeast 126 1972 Apr-11

Domain at Kirby Medical Center/Bellaire 293 2009 Apr-11

Trails of Woodlake Woodlake/Westheimer 244 1972 Apr-11

Colony Oaks by the Bay Clear Lake 162 1968 Apr-11

Verde Woodland Hills Lake Houston/Kingwood 282 2009 Apr-11

Steeplecrest FM 1960 West/Steeplechase 260 1992 Apr-11

Westheimer Terrace Woodlake/Westheimer 306 1968 Apr-11

Crofton Place Far East 268 1977 Apr-11

Woodland Green Heights 30 1965 Apr-11

Whispering Pines Ranch Woodlands/Far North 300 2002 Apr-11

Brazos Huntsville 160 1983 Apr-11

Bent Tree Katy/Far West 291 2001 Apr-11

Crossings at Willow Bend Brookhollow 165 1979 May-11

Bellestone Villas Gulfgate/Almeda Mall 60 1964 May-11

Elm Grove Lake Houston/Kingwood 136 1979 May-11

Stone Mist FM 1960 West/Steeplechase 192 1999 May-11

Oak Forest Spring Branch 321 1971 May-11

Indigo Falls Gulfgate/Almeda Mall 1062 1978 May-11

Reserve at City Center North (fka Westway Village) Spring Branch 326 1979 May-11

Applewood Village Townhomes FM 1960 West/Champions 92 1984 May-11

Augusta Meadows Tomball/Far Northwest 268 2009 Jun-11

Reserve at City Center North, The Spring Branch 326 1979 Jun-11

Villages at Meyerland, The Braeswood/Fondren SW 714 1966 Jun-11

Ryan's Point Katy/Far West 280 1982 Jun-11

Woodscape Braeswood/Fondren SW 544 1977 Jun-11

First Line Pasadena/Deer Park 122 1973 Jun-11

Villas at Hermann Park Medical Center/Bellaire 320 2000 Jun-11

Cypress Ridge FM 1960 West/Champions 268 1980 Jun-11

Century Sienna Plantation (fka Gateway at Sienna Plantation) Fort Bend 270 2007 Jun-11

Copper Springs (fka Las Ventanas) Bear Creek/Copperfield 376 2003 Jun-11

Camden Cypress Creek (fka Verde Cypress Creek) Katy/Far West 310 2009 Jun-11

Camden Lakemont (fka Verde Lakemont) Fort Bend 312 2007 Jun-11

Camden Northpointe (fka Verde Northpointe) Tomball/Far Northwest 384 2008 Jun-11

Estancia at Shadowlake Alief 324 2005 Jun-11

Village of Fondren Braeswood/Fondren SW 72 1983 Jun-11

Shadowbrooke Fort Bend 240 2003 Jun-11

Silverbrooke Fort Bend 312 2008 Jun-11

Milagro Plaza Gulfton/Bissonnet 258 1977 Jun-11

Cedar Gate Spring Branch 52 1971 Jun-11

AMLI 2121 (fka Bel Air, The) Montrose/Museum District 431 2006 Jun-11

Amalfi at Tuscan Lakes Clear Lake 328 2009 Jun-11

Sorrento at Tuscan Lakes Clear Lake 204 2008 Jun-11

Broadstone Grand Parkway Katy/Far West 342 2009 Jun-11

Crossings at Fair Meadow, The Braeswood/Fondren SW 124 1974 Jun-11

4



Q2.2011Houston

CurrentlyUnderConstruction

CONSTRUCTION• 4,152 units (encompassing 24 communities) have been delivered to the market in the past twelve months, of which 62% are conventional and

38% are senior housing units.

• 3,508 units (17 communities) are currently under construction, 80% of these units are conventional, the remainder - 12% are affordable and 8% are senior housing.

• Proposed construction is currently at 13,840 units (46 communities) of which 68% is concentrated in the following four submarkets:

1) Montrose/ Museum District (3,653 infill units) 3) Katy/ Far West (2,118 suburban units)

2) Inner Loop West/ Greenway Plaza (1,900 infill units) 4) Galleria (1,806 infill units)

Submarket Property Units Type

Inner Loop W/Greenway Gables Post Oak 316 Conventional

Heights 2411 Washington @ Sawyer 222 Conventional

Med Center/Bellaire Shriner’s Temple Site 474 Conventional

Inner Loop East Kennedy Place Redevelopment 108 Affordable Housing

West Memorial Domain at Eldridge 320 Conventional

Westchase Camden Royal Oaks II 104 Senior Housing

FM 1960 W/Champions Cypresswood Estates 88 Senior Housing

FM 1960 W/Steeplechase Villas of Willowbrook 48 Conventional

Katy/Far West Cinco Terrace & 1093 316 Conventional

Woodlands/Far North Woodlands Lodge 300 Conventional

Woodlands/Far North Retreat at the Woodlands 240 Conventional

Tomball/Far Northwest Kuykendahl-FM 2920 64 Conventional

Lake Houston/Kingwood Sierra Meadows 90 Senior Housing

Lake Houston/Kingwood Discovery Kingwood 324 Conventional

Hwy 288/South South Acres Ranch II 58 Affordable Housing

Hwy 288/South Pearland Town Center 172 Conventional

Pasadena/Deer Park Providence at Town Square 264 Affordable Housing

3,508

Now LeasingSubmarket Property Units Type

Hwy 288/ South Corinthian Village 124 Senior Housing

FM 1960 West/ Champions Mittlestedt Champions 56 Conventional

Galveston/ Brazoria Highland Manor 140 Senior Housing

Clear Lake Clear Point Residences 252 Conventional

Montrose/ Museum District City Place Midtown 185 Conventional

Katy/ Far West Grand Villas 384 Conventional

Katy/ Far West Trebah Village 129 Senior Housing

Galveston/ Brazoria Melbourne 110 Senior Housing

Clear Lake Grand Villas at Tuscan Lakes 210 Conventional

Lake Houston/ Kingwood Wentworth 90 Senior Housing

Katy/ Far West Legends at Cinco Ranch 260 Conventional

Brookhollow Orchard at Garden Oaks 118 Senior Housing

Katy/ Far West Verona at the Reserve 356 Conventional

Woodlake/ Westheimer The Ava 321 Conventional

Inwood/ Northwest Chelsea 150 Senior Housing

Northline/ Aldine Northline 172 Conventional

Hwy 288/ South Pearland Senior Village 124 Senior Housing

Submarket Property Units Type

Galveston/ Brazoria Jackson Village 96 Senior Housing

FM 1960 East/ IAH Airport Deerbrook Place 159 Senior Housing

Katy/ Far West Palms at Cinco Ranch 200 Conventional

Friendswood/ Pearland Villas at El Dorado 159 Senior Housing

Gulfgate/ Almeda Mall Villa del Prado 118 Conventional

Inner Loop East CityView Lofts 57 Conventional

FM 1960 West/ Champions Mariposa at Ella 182 Senior Housing

4,152

5



Q2.2011Houston

Construction by Submarket

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Montrose/ Museum District

Inner Loop West/ Greenway Plaza

Medical Center/ Bellaire

Heights

Inner Loop East

Northline/ Aldine

FM 1960 East/ IAH Airport

Lake Houston/ Kingwood

Far East

Brookhollow

Inwood/ Northwest

FM 1960 West/ Champions

FM 1960 West/ Steeplechase

Katy/ Far West

Tomball/ Far Northwest

Woodlands/ Far North

Hwy 288/ South

Gulfgate/ Almeda Mall

Pasadena/ Deer Park

Friendswood/ Pearland

Clear Lake

Galveston/ Brazoria

Galleria

Woodlake/ Westheimer

West Memorial/ Briar Forest

Westchase

(#ofUnits)

ProposedConstructionUnits(Total = 13,840)

UnderConstructionUnits(Total = 3,508)

NowLeasingUnits(Total = 4,152)

3,653 185

1,900 316

734 474

222

360 108 57

172

159

514 414 90

280

118

150

857 88 238

48

2,118 316 1,329

64

540

300 230 248

118

264

126 159

740 462

60 346

1,806

321

392 320

104

Graph values:

6



Q2.2011Houston

Houston Apartment Submarkets

Submarket# of Apt.

Communities# of Apt.

UnitsAverage

OccupancyAverage Unit SF

Avg. Effective Rent / Month

Avg. Effective Rent / SF

Units Under Constr.

Units Absorbed(2Q 2011)

1 Montrose/ Museum District 136 13,230 94.20% 891 $1,175 $1.32 0 158

2 Inner Loop West/ Greenway Plaza 86 14,609 93.50% 928 $1,177 $1.27 316 129

3 Medical Center/ Bellaire 97 20,256 92.90% 868 $999 $1.15 474 42

4 Heights 37 3,280 93.30% 818 $973 $1.19 222 -16

5 Inner Loop East 91 10,058 86.90% 822 $740 $0.90 108 -

6 Northshore/ Wood Forest 44 8,823 77.20% 817 $599 $0.73 0 65

7 Eastex Frwy/ Near Northeast 49 6,919 86.50% 898 $639 $0.71 0 -19

8 Northline/ Aldine 76 10,844 89.00% 843 $586 $0.70 0 135

9 Greenspoint 40 9,702 86.40% 773 $538 $0.70 0 382

10 FM 1960 East/ IAH Airport 45 8,336 84.20% 851 $654 $0.77 0 -37

11 Lake Houston/ Kingwood 42 10,635 91.60% 929 $853 $0.92 414 74

12 Far East 32 4,436 86.30% 904 $685 $0.76 0 15

13 Brookhollow 98 20,602 81.20% 827 $626 $0.76 0 251

14 Spring Branch 120 19,069 86.90% 910 $640 $0.70 0 210

15 Inwood/ Northwest 40 7,275 84.40% 882 $637 $0.72 0 27

16 FM 1960 West/ Champions 152 36,638 84.10% 875 $696 $0.80 88 518

17 FM 1960 West/ Steeplechase 67 18,163 94.70% 915 $821 $0.90 48 323

18 Bear Creek/ Copperfield 49 12,890 93.10% 882 $787 $0.89 0 139

19 Katy/ Far West 55 14,002 87.60% 945 $913 $0.97 316 235

20 Tomball/ Far Northwest 23 2,837 92.30% 879 $773 $0.88 64 67

21 Woodlands/ Far North 41 11,703 93.30% 935 $952 $1.02 540 227

22 Conroe/ Montgomery 43 7,080 90.80% 894 $722 $0.81 0 3

23 Hwy 288/ South 75 13,279 84.40% 938 $773 $0.82 230 94

24 Gulfgate/ Almeda Mall 138 23,744 86.20% 815 $579 $0.71 0 221

25 Galena Park/ Jacinto City 13 871 83.50% 749 $458 $0.61 0 14

26 Pasadena/ Deer Park 139 23,915 82.50% 848 $613 $0.72 264 25

27 Friendswood/ Pearland 30 5,549 89.70% 866 $777 $0.90 0 60

28 Clear Lake 104 24,549 90.20% 878 $795 $0.91 0 381

29 Baytown 56 8,929 83.00% 847 $625 $0.74 0 138

30 Galveston/ Brazoria 124 19,336 83.10% 828 $633 $0.76 0 369

31 Galleria 104 22,290 90.90% 886 $980 $1.11 0 85

32 Woodlake/ Westheimer 39 12,003 90.00% 890 $810 $0.91 0 168

33 West Memorial/ Briar Forest 78 23,487 90.00% 947 $856 $0.90 320 71

34 Westchase 49 13,937 91.70% 833 $755 $0.91 104 118

35 Alief 113 27,145 84.40% 870 $653 $0.75 0 305

36 Sharpstown/ Westwood 115 26,029 83.60% 792 $518 $0.65 0 282

37 Gulfton/ Bissonnet 70 18,132 83.80% 813 $563 $0.69 0 -166

38 Braeswood/ Fondren SW 89 22,580 78.20% 838 $572 $0.68 0 -33

39 Almeda/ South Main 27 5,029 88.50% 846 $615 $0.73 0 -70

40 Fort Bend 45 12,022 94.20% 941 $926 $0.98 0 65

41 Richmond/ Rosenberg 24 3,372 89.20% 844 $700 $0.83 0 -48

TOTALS/AVERAGES 2,895 577,585 87.20% 869 $741 $0.85 3,508 5,007

7



Q2.2011Houston

1

3436

41

11

29

45

10

45

10

Houston Apartment Submarkets

1 Montrose/ Museum District 11 Lake Houston/ Kingwood 21 Woodlands/ Far North 31 Galleria

2 Inner Loop West/ Greenway Plaza 12 Far East 22 Conroe/ Montgomery 32 Woodlake/ Westheimer

3 Medical Center/ Bellaire 13 Brookhollow 23 Hwy 288/ South 33 West Memorial/ Briar Forest

4 Heights 14 Spring Branch 24 Gulfgate/ Almeda Mall 34 Westchase

5 Inner Loop East 15 Inwood/ Northwest 25 Galena Park/ Jacinto City 35 Alief

6 Northshore/ Wood Forest 16 FM 1960 West/ Champions 26 Pasadena/ Deer Park 36 Sharpstown/ Westwood

7 Eastex Frwy/ Near Northeast 17 FM 1960 West/ Steeplechase 27 Friendswood/ Pearland 37 Gulfton/ Bissonnet

8 Northline/ Aldine 18 Bear Creek/ Copperfield 28 Clear Lake 38 Braeswood/ Fondren SW

9 Greenspoint 19 Katy/ Far West 29 Baytown 39 Almeda/ South Main

10 FM 1960 East/ IAH Airport 20 Tomball/ Far Northwest 30 Galveston/ Brazoria 40 Fort Bend

41 Richmond/ Rosenberg

4

52

3

6

7

29

26

24

2339

313233

35

38

40

18

15

1314

25

27

28

8

9

1219

17

20

21

11

10

1

16

34

41

CBD

GalvestonBay

36

30

22

37

NHarris County Line

8



Q2.2011Houston

TRANSWESTERNHOUSTON MULTIFAMILY GROUP1900 West Loop South, Suite 1300

Houston, Texas 77027713.270.7700 | telephone713.271.8172 | facsimilewww.transwestern.net

Amherst at CityView Savannah Club

Units: 310 Built: 1979 Units: 180 Built: 2003

Location: Houston, TX Location: San Marcos, TX

Price: $6,500,000 Status: Available

Augusta at CityView Gulf Royale


Location: Houston, TX Location: Texas City, TX

Price: $5,300,000 Status:UnderLOI

Biscayne at CityView Westbury Village


Location: Houston, TX Location: Missouri City, TX

Price: $7,300,000 Status:UnderContract

Breckenridge at CityView The Park at Lakeside


Location: Houston, TX Location: Houston, TX


CityView West Evergreen Pointe




Crescent at CityView Indigo Falls

Units: 282 Built: 1982 Units: 1,062 Built: 1972


Price: $4,000,000 Status: Sold

Durham at CityView Woodscape




Salado at CityView Clear Lake Falls


Location: Houston, TX Location: Webster, TX


Current Listings and Recent Transactions

FOR SALE

FOR SALE

The information in this report is the result of a compilation of information on the Houston MSA multifamily market. Transwestern obtained the information from a variety of primary and secondary sources, including Apartment Data Services, Inc., O’Connor & Associates and Real Capital Analytics, Inc..

FOR SALE

FOR SALE

FOR SALE

FOR SALE

FOR SALE

FOR SALE

apartment report - transwestern · pdf file · 2016-07-181900 west loop south,...

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