Sagard Real Estate is doubling down on its pivot from office to multifamily and industrial with a well-positioned Houston investment purchase.
The firm, formerly known as EverWest Real Estate Investors, snapped up Pearl Midlane, a 330-unit property in Houston’s River Oaks neighborhood, according to a release from Sagard. The firm purchased the property from Houston-based real estate company The Morgan Group.
The price was not disclosed, but Sagard assumed a $39 million mortgage on the property from MetLife Real Estate Lending, loan documents show. The Morgan Group secured the loan in 2018 when the property was appraised at $49 million by the Harris Central Appraisal District. This year, the property was valued at $67.6 million.
The apartment complex, at 2121 Mid Lane, was built in 2009 and revamped in 2021. It spans 326,000 square feet and features a pool, gym, workspaces and a hotel suite for guests.
Pearl Midlane is within a mile or so of the Highland Village retail center and Tilman Fertittas’ River Oaks District. The affluent neighborhood will soon be home to The RO, a 17-acre urban village Transwestern has planned for the intersection of West Alabama and Buffalo Speedway.
Sagard is reducing its office portfolio to focus on multifamily and industrial investments.
Accordingly, it offloaded a five-building office campus in Southern California for $27.5 million to an undisclosed buyer last month. That worked out to $149 per square foot.
The firm also purchased a 209-unit multifamily property in Tempe, Arizona in October.
Since the Federal Reserve reduced interest rates in September, experts expect to see more commercial transactions like these.
However, pricing for multifamily properties likely won’t bounce back until the market experiences rent growth, Madera Residential’s Jay Parsons said.
Multifamily rents continue to fall in Houston.
Between September 2024 and the year before, the average rent for a Class-A property dropped from $1,768 to $1,751 per month, according to a report from the Greater Houston Partnership citing data from MRI Apartment.
Read more
Sagard sells five-building office campus in Tustin for $28M
$82M office building on deck for Transwestern’s River Oaks project
Tilman Fertitta doubles down on River Oaks District
