On July 30th, the Echelon at West Lake Houston apartment development was sold for $44.8 million ($160,000/unit), generating a 19.3% IRR and an Equity Multiple of 1.7 to 1 over the three-year hold period. The purchaser was a private equity firm based in Kansas City. Construction of this 280 unit apartment development on 16.8 acres in northeast Houston began June 2015 and was completed May 2017. At the end of QII 2018 the property was 94% leased. It was owned by a joint-venture partnership of Westminster Realty Partners LP and The Garrett Companies.
About Westminster Capital
Westminster Capital manages real estate investment strategies on behalf of private wealth capital, including sponsorship of closed-end investment funds and separate account portfolios totaling $860 million of investor capital. Westminster Capital makes commercial property investments throughout the United States across Industrial/Distribution, Apartments, Medical Office and Senior Living properties offering Value-Add to Opportunistic risk-reward returns. Such work includes rebuilding income streams of existing properties, or manufacturing them through new construction. The firm employs careful investment underwriting and pursues well-funded tenants motivated by powerful, long-term secular trends in their needs for such properties. Founded in 1988, the firm is headquartered in Lake Forest, Illinois.