Two newly built luxury multifamily developments in the Heights have been acquired by Adventure, Florida-based Cardone Capital, whose CEO, Grant Cardone, is perhaps best known for his appearances on the Discovery Channel’s “Undercover Billionaire.”
Cardone Capital paid an undisclosed sum to purchase 15th Street Flats and Heights Waterworks from Scottsdale, Arizona-based Alliance Residential Co. Together, the two eight-story multifamily properties — dubbed the Heights Collection by Alliance — have 646 units between them.
Berkadia Houston senior managing directors Chris Curry and Todd Marix, along with managing directors Jeffrey Skipworth, Joey Rippel and Chris Young, represented Alliance. A Berkadia team from Florida also secured acquisition financing on behalf of Cardone Capital. That team consisted of Senior Managing Director Mitch Sinberg and Associate Director Matt Robbins of Berkadia Boca Raton, along with Managing Director Brad Williamson of Berkadia Miami. Cincinnati-based Eagle Realty Group, on behalf of Western & Southern Financial Group, originated the six-year loan.
“The Heights Collection offered Cardone Capital a unique opportunity to add two brand-new multifamily assets, consisting of 646 units both purchased below replacement cost, to their already existing 800 units in Houston,” said Curry. “Because these two properties stand apart from their peers in terms of location and overall quality, the new ownership has an opportunity to create value in a market that is on the upswing with the return of renters to the urban core.”
The 15th Street Flats is located at 1414 N. Shepherd Drive and was completed in earlier this year. The 337-unit apartment complex offers one- and two-bedroom units ranging from 638 to 1,273 square feet.
Each unit in 15th Street Flats is outfitted with wood-plank style flooring, full-sized washers and dryers, built-in mudrooms, LED lighting and ceiling fans, 10-foot ceilings, white Carrera-style quartz countertops, chrome plumbing fixtures, stainless steel sinks and private yards. Community amenities includes a rooftop pool, social and business lounges, a private dining room, outdoor spaces for alfresco dining, an outdoor kitchen with a pizza oven, direct-access elevators and a courtyard.
Located at 515 W. 20th St., Heights Waterworks was completed in 2020 and offers 309 units of one- and two-bedrooms, ranging from 600 to 1,265 square feet. Development of the project began in 2018.
Units in that development come with stainless steel appliances, gas stoves, full-sized washers and dryers, white and gray Shaker-style cabinetry, quartz countertops, wood-style plank flooring, LED lighting, ceiling fans and electronic locks. The community’s amenities include a fitness center, an outdoor grilling kitchen, a pool with shaded cabanas, a music lounge, controlled-access bike storage, an indoor pet spa with a salon, access to a bike trail, and a resident area with a library, computer lounge and a salon.
The Heights Waterworks apartment community is adjacent to Houston-based Braun Enterprises’ Heights Waterworks mixed-use development.
In December 2016, Alliance paid the city of Houston for $15.02 million for two tracts of land totaling almost 4 acres, which were once home to the original Heights Waterworks. The property purchased included a 750,000-gallon brick reservoir building from 1928, which is listed on the National Register of Historic Places; a 1939 Art Deco pumping station built by the Works Progress Administration; and a 1949 pumping station.
Alliance kept one tract of land for apartments and sold the other to Braun Enterprises for the retail and restaurant project, which is home to such tenants as Common Bond Bistro & Bakery, Floyd’s 99 Barbershop, Hopdoddy Burger Bar, Jinya Ramen Bar and Verdine.
Meanwhile, Grant Cardone, who has more than two decade’s experience in real estate investment, appeared on the most recent season of “Undercover Billionaire,” which challenges established entrepreneurs to take $100 and start a business in an unfamiliar city. The goal of the show is to build a $1 million company in just 90 days. Cardone has authored several guides to business and entrepreneurship and is the founder of the 10X Movement in addition to Cardone Capital. He is also a frequent speaker on business strategies.
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