A Texas firm snapped up a distressed apartment complex from a California developer.
Presidium, a Dallas-based multifamily investment, development and management firm that specializes in value-add real estate, purchased Whitney at The Heights, a 186-apartment community in a neighborhood that’s attracted upscale development in recent years. The seller is an LLC registered to Bradford Korzen, according to public records. Korzen is the founder of both Los Angeles-based Kor Group, which primarily develops and invests in hotels, and Santa Monica, California-based Proper Hospitality.
The sale price was not disclosed. The deal closed March 11, the deed shows.
Korzen acquired the complex at 2424 East T.C. Jester Boulevard in April 2022, according to public records. Acre Credit Fund lent Kor $34 million the following month, amounting to about $182,800 per unit, public records show.
That loan was the biggest commercial real estate loan in Texas flagged for a foreclosure auction sale in March, according to data from Roddy’s Foreclosure Listing Service.
Built in 2001, the Whitney includes one-, two- and three-bedroom units between 666 square feet and 1,320 square feet, according to a Presidium press release. Presidium co-founder and co-CEO John Griggs called The Heights “one of Houston’s most sought-after neighborhoods” in the release, and said that Presidium plans to improve the property. Studio monthly rent starts at $1,299, and rent for a three-bedroom unit is as high as $2,214, according to Apartments.com.
Renovations are planned to start next month, Presidium stated.
The Heights is inside the 610 Loop and north of I-10, separating it from the high-end Memorial and River Oaks neighborhoods just to the south.
Recent and ongoing developments in The Heights include the boutique Hotel Daphne, which opened in December, and an adaptive reuse development of a historic industrial building at 621 Waverly Street that’s still underway.Korzen acquired the Whitney shortly after a housing boom drove annual asking rent growth past 7 percent, according to CoStar. However, due to oversupply, Houston’s apartment rent growth turned negative last year for the first time since 2010, CoStar found.
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