California investor pays more than $150M for Houston apartment portfolio as out-of-town investors flock here

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California investor pays more than $150M for Houston apartment portfolio as out-of-town investors flock here
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Houston-based Nitya Capital has sold a 1,500 apartment-unit portfolio to a San Diego...

Houston-based real estate firm Nitya Capital has been selling off hundreds of Houston-area apartments lately, including this property pictured, Bayou Park Apartments. This apartment complex was sold in April separately from another apartment deal the firm recently closed involving five other apartment properties in the Houston area.

The transaction comes as investors flock to Texas and other Sun Belt markets where strong apartment demand has lifted leasing activity and rents throughout the pandemic. Out-of-state investors accounted for more than 70 percent of buyer volume in the Houston multifamily market in the past four quarters, according to commercial real estate data firm CoStar.

“You’re seeing hundreds of thousands of people moving to Texas, including Dallas, Houston and Austin,” and a lot of major institutional investors have taken notice, said Swapnil Agarwal, CEO and founder of Nitya Capital. Although Houston’s rent growth isn’t as high as other markets in Nitya’s portfolio, Agarwal said Houston is still seeing huge jumps in rents across the board.

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