HOUSTON, TX – Bodka Creek Capital has acquired Terraces Apartments, a 240-unit Class C apartment complex in Texas City, Texas for $ 17.6 million. This marks the further expansion of the Houston-based real estate company.
Terraces @ 2602 marks the first acquisition for Bodka in 2021 after completing two complexes in 2020. Bodka currently manages a commercial real estate portfolio of $ 24 million with over 300 multi-family units totaling nearly 300,000 square feet. The acquisition makes Bodka the largest African-American owned real estate investment firm in Texas and a top 3 nationwide company. The company will pursue increasingly greater value opportunities in the Southeast, with a focus on Texas.
Located at 2602 21st Street N, the 164,614 square foot decks @ 2602 were 99 percent leased at the time of closure. The property, one of the most desirable in Texas City, features two sparkling swimming pools, on-site laundry facilities, a dog park, and reserved parking. With over 10.5 hectares, the quiet community offers enough space for individuals and families.
While Bodka invests in urban and suburban markets, it has been drawn to the attractive risk / return fundamentals of this Houston submarket, according to founder and managing partner Allyson M. Pritchett.
"Terraces is a stabilized apartment building with several significant value creation opportunities in one of the fastest growing submarkets in Houston," said Pritchett. "We were able to hedge the asset at an attractive cap rate and at a price well below its estimate. We look forward to buying as many deals with this type of profile as there are ways to do so."
Investment partners included Pritchett's brother Theodore E. Pritchett III and Daniel Hamann and Graham Crain, who were also partners in Gulfwind Apartments. Naval Sehgal, Ash Shah and Brian Pope rounded off the partnership.
Jonathan Paine and Tom Fish of Walker & Dunlop's Houston Office and David Kwitman of Ready Capital's New York Office secured the debt. Matt Saunders of NKF's Houston Office represented the seller.
Source: Bodka Creek capital