Investment Summary

The subject property lies in the newly developed, 1,039-acre master-planned community, Sunterra. Located in the highly desirable Katy area, located a few miles north of Interstate 10 and west of the Grand Parkway, Sunterra offers residents easy access to the city's largest employment hubs. The Sunterra master-planned community will consist of 2,200 homes, as well as a 3.5-acre Crystal Lagoons amenity, lakes, parks, playgrounds and an expansive Amenity Village with a clubhouse and a pool overlooking the lagoon.

The market surrounding The Vic at Sunterra is poised to experience explosive population growth in the coming years. The surrounding demographics are favorable to multifamily investment. The young highly educated population provides high income and high consumer spending.

Site Plan

Area Overview

Outward expansion has been an ongoing trend in Houston in recent years, and the Bear Creek/Copperfield Submarket has been a prime recipient of that growth. It is home to high-growth cities such as Katy, whose population has grown substantially over the past decade, providing a steady stream of potential renters.
According to the most recent 2021 census data, Katy's population has surged by about 90% since 2010.

Investor interest for multi-family assets remains high in this submarket. The submarket has averaged 11 trades annually over the past five years, including 26 in the past 12 months. Local private parties dominate the investment market, although some of the submarket's newest communities have sold to national investors

Developers have followed this strong rooftop growth, and the submarket consistently ranks among the most active submarkets for construction in Houston. Roughly 1,300 units opened over the past 12 months, and about 4,200 units are underway. Much of this new supply is concentrated near the Grand Parkway (State Highway 99), which runs directly through the submarket. These new projects have posted impressive lease-up rates, and the submarket's vacancy rate has compressed by more than half its peak of 16% seen during 20Q1.

While competition from new and pending deliveries should continue to put some downward pressure on rents, rent growth has proven resilient over the past few quarters. Rent growth has soared 8.5% over the past 12 months, although that is coming off a peak of 12.1% from a few quarters prior.





The Sunterra Master Plan community has a high barrier of entry with only two sites available for multifamily development. This exclusivity and limited supply of multifamily developments in the area add to the community's desirability and long-term viability, making it an excellent investment opportunity for multifamily developers and investors.

Demographics

The Katy submarket, where The Vic at Sunterra is located, has been experiencing continued population growth, increasing by roughly 145% from 2010 to 2022. This growth is expected to continue, with an estimated 30% increase by 2027. Moreover, the submarket boasts a highly educated population, with 22.4% of the population earning a bachelor's degree or higher, making it an ideal destination for young professionals and families seeking high-quality education and career opportunities.The community's youngest residents attend Bryant Elementary, Haskett Middle School, and Katy/Paetow High School, which are all renowned for their exceptional academic programs and extracurricular activities.

In a 3-mile radius, local household incomes average $106,752 a year, indicating a high-income demographic that can support luxury multifamily developments like The Vic at Sunterra. Despite an influx of new product in the submarket, the community has experienced strong year-over-year rent growth, highlighting the strong demand for high-quality rental housing in the area.

Rent Comparables

Rental Income

Meet the Sponsor

Established in 1984, Hunington Properties offers a complete range of real estate services to tenants, owners, equity investors and joint venture partners across the multifamily, retail, industrial and land sectors across Texas. As a development & brokerage firm, Hunington brings together unrivaled expertise, dedication and vision to provide sustainable value for our clients. Our experience and insight allow us to identify and capitalize on market trends often well in advance of our competitors. The firm leverages our insight and experience to maximize returns for its partners.

For more information, please contact:

Solomon Nwokedi

Email: solomon@redswan.io

Phone: +1(713)-360-7928