By:  Hadassa Kalatizadeh

Sunbelt Holdings, a subsidy of Kushner properties, is expanding into high growth areas.

As reported by the Real Deal, on Wednesday the real estate firm connected to Jared Kushner’s family, closed on three multi-family properties in Houston, Texas. The company shelled out a total of $200 million for the portfolio in the high-growth North Houston submarkets of Tomball, Cypress and Lake Houston.

As per the Real Deal, the deals involve all new-construction apartment complexes.  In 2020, a national builder broke ground on the properties, and leasing was completed this year on all three properties. The number of units in the purchased complexes totals 1,072.  The units are all one- and three-bedroom apartments, with an average size of 1,034 square feet.  The average rent price for the units is a little more than $1,500 per month. The complexes are all Class A workforce housing and include amenities expected of high-end multifamily properties, as per the source familiar with the deal.

The three deals were brokered by Berkadia, and Freddie Mac was the lender for all the deals. The purchases mark the firm’s entry into the Houston market, said Riley Wilson, head of Sunbelt acquisitions for Kushner. Wilson wrote in an email that the portfolio of high-quality assets in “well thought-out locations … provides a unique opportunity to acquire scale in strong submarkets that will benefit greatly from the ever-growing city of Houston.”

Throughout 2021, Kushner Cos has been expanding aggressively, having purchased some 8,000 multifamily units across the southern part of the country this year alone.  The purchased units were relatively new –constructed after 2010.  The company sold off roughly 6,000 units this year, mostly older complexes built around the 1970s and located in the eastern United States.

The multifamily market has appeal for the Kushner Co’s operation, as well as many other companies with aspirations to expand, because of the strong fundamentals  including  population and job growth in the areas. The company has also been expanding its presence in the regions of Florida, Texas and Georgia.  The firm will be breaking ground in Fort Lauderdale in 2022, to develop a four-tower site approved for 1,500 apartments, in a joint venture with Aimco.

Under the leadership of Chief Executive Officer Laurent Morali, and President Nicole Kushner Meyer, Kushner’s r’s portfolio is being valued at more than $15 billion as of 2021.