PrivCap Holdings sold Emerald Pointe Apartments in Houston, TX generating 32.46% IRR for investors. This is PrivCap’s second hit in Houston as that market has fared well for the company.
Following Hurricane Harvey this past summer, many ground floor apartments suffered water damage. A local buyer viewed it as an opportunity to upgrade the units taking advantage of a strong rental market with many homes and apartments vacated from the storm. With the looming insurance claim and a strong offer in hand, the PrivCap team decided to accept the offer and the yield generated.
PrivCap acquired the 364-unit complex in June 2016 for $13.3mil and sold it in February 2018 for $17.1mil.