Sunstone Two Tree has acquired Villas del Paseo, a 384-unit community in Houston, for $28.9 million. Comunidad Realty Partners sold the asset, according to Yardi Matrix information. Newmark Vice Chairman Matt Saunders represented the seller.
The property previously traded in 2019, when the seller bought two communities for $33.2 million from Glen Una Properties and rebranded them as one, the data provider shows. Sunstone also assumed the outstanding balance of a $24.5 million CMBS loan originated during the same year by Bellwether Enterprise Real Estate Capital, according to public records.
The 1978-completed community comprises one-, two- and three-bedroom layouts ranging between 720 and 1,450 square feet. Amenities at the two-story, 39-building property include a fitness center, a swimming pool, laundry facilities and a business center.
The new owner is already implementing a $10.5 million capex program at the property, which is slated for completion next year. Plans call for a two-phase renovation of all units, roof replacement and balcony and parking lot reparations, along with upgrading the clubhouse, the pool and adding dog parks and barbecue areas.
Villas del Paseo is at 3030 Elmside Drive in the Westchase neighborhood, close to several dining options. Hong Kong City Mall is 4 miles away, while downtown Houston is within 14 miles.
Houston’s multifamily sector faces headwinds
According to Yardi Matrix information, 109 communities—totaling about 27,700 units—changed hands last year for a combined $1.9 billion, a steep decline from the 387 communities—or 97,400 units—that traded in 2022 for $10.2 billion.
In December, Mosaic Residential purchased The Columns at Westchase, a 318-unit community located less than 2 miles from Villas del Paseo. ECI Group, the seller, had paid $35 million for the asset in 2018.
A few months earlier, Venterra Realty expanded its Houston footprint with the acquisition of the 361-unit Avasa Spring Branch. PNC Bank provided a $45 million loan for this purchase.
