Fund III

Stella at the Medical Center

Houston,

TX

Total Required Equity
$6,000,000
Asset type
Multifamily
Investment Objective
Value Add
Investment Date
August 2016
Realized IRR
11.90%
Realized Net Multiple
1.84x

Investment Summary

Stella at the Medical Center, formerly known as AMLI at Medical Center, was a 344-unit Class B multifamily property strategically located within the Texas Medical Center (TMC), the world’s largest medical complex. At the time of purchase, the TMC had 106,000 employees and included 21 hospitals, 13 support organizations and eight academic research institutions.

Built in 2000, this unique asset was one of the last garden-style assets in the submarket that included townhomes and some of the area’s only three-bedroom units. Additionally, Stella featured 9-foot ceilings, a clubhouse complete with a lounge and beverage bar, a resort-style fitness center and large swimming pool.

Our investment strategy was to perform sizable capital improvements to fully upgrade amenities to mirror Class A product in the area. The interior renovations allowed Stella to compete with newer apartments and included vinyl wood flooring, granite countertops, stainless steel appliances, tile backsplashes, modern LED lighting and a contemporary paint design.

After a 5.5 year hold, Stella at the Medical Center was sold in February of 2022. The sale generated an 11.9% IRR and a 1.84x multiple for Fund III investors.

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