Steel Castle Closes Second Major Real Estate Investment
Income-Oriented Real Estate Vehicle Acquires Carrington Park Apartments in Houston's Energy Corridor
ORANGE COUNTY, Calif./ HOUSTON, Tex. (Sept. 17, 2012)—Steel Castle Capital LLC, a boutique real estate investment management firm based in Orange County, Calif., and Philadelphia, has acquired a second Houston-area property on behalf of a private real estate investment vehicle it formed earlier this year, Steel Castle Property Partners.
Carrington Park Apartments, the investment vehicle's latest acquisition and its second major purchase in four months, is a 390-unit Class A multifamily property in Houston's energy corridor, built on 30 acres in 2004. Steel Castle acquired the apartment community at auction from a special servicer and completed the closing within 30 days.
The community is 95 percent occupied and offers residents outside storage, custom cabinetry, bay windows, walk-in closets, private patios/balconies, washers and dryers and attached garages. Property amenities include a business center, 24- hour emergency maintenance, security gates, a clubhouse with billiard room, a fitness center, barbecue grills and a swimming pool.
"Houston's energy corridor is ground zero for the country's oil and gas industry, and it's one of the fastest-growing areas of the Houston metroplex," says Craig M. Reed, managing principal at Steel Castle Capital. "Carrington Park boasts convenient access to local freeways and nearby business and shopping districts. High employment and a thriving local economy are important indicators of the property's promise for strong financial returns."
Steel Castle plans to acquire additional assets in Texas and target markets with similar characteristics. The swift close on this property underscores the firm's ability to act quickly and decisively to secure investments with solid income potential.
"We're establishing a track record of closing quickly on attractive investments and making smart use of our capital," says Bob Cooney, managing principal at Steel Castle Capital. "As long as fixed-income investments continue to deliver low yields, investors are eager to take advantage of the alternatives we provide that can generate income and preserve capital without significant additional risk."