29th Street Capital has bought the two-building Venue Museum District in Houston from Hines. The firm’s acquisition of the property in the Museum District was its 16th purchase of a multifamily asset in the city’s metropolitan region.
The 224-unit Venue Museum District, located at 5353 Fannin St., offers one- and two-bedroom apartments, ranging from 763 to 1,857 square feet. Unit amenities include above-standard ceiling heights, stainless steel appliances, wine chillers, granite slab countertops, wood cabinets, hardwood floors, walk-in closets, balconies, washers and dryers, intrusion alarms, energy-efficient solar shades and power-saving digital programmable thermostats. Select apartments have floor-to-ceiling windows, built-in computer niches and bookcases and master baths with soaking tubs and linen valets.
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Residents have access to conveniences that include a 24-hour concierge, a resort-style pool with cabanas, an outdoor grilling area, a 24-hour fitness center, a sports lounge with flat-screen televisions, a clubhouse with a business center, a library with game tables and a limited access parking garage. A sky bridge connects the two buildings comprising Venue Museum District.
“We liked the deal because of its A-plus location in the Museum District. We’ve seen a lot of growth in that area right now. Venue Museum District is right down the street from the Texas Medical Center. There are several billion dollars in developments in that area, with the largest being TMC3,” Doug Burt, vice president of acquisitions in Texas with 29SC told Multi-Housing News.
Burt noted Texas Medical Center is the largest medical center in the world, encompassing more than 50 million square feet of office and medical space. He estimated the 37-acre TMC3 project will bring more than 25,000 high-paying medical jobs to the city when completed. According to the Texas Medical Center’s website, the 5 million-square-foot TMC3 will include healthcare facilities, public space, a hotel, a residential tower and retail space.
29SC has planned enhancements to Venue Museum District’s apartments, including designer closets, updated finishes in the kitchens and bathrooms and a technology package that includes smart locks and energy-saving smart thermostats. It also intends to update the property’s fitness center, pool and signage.
Venue Museum District is across the street from a Houston Metrorail station. Residents are close to the Texas Medical Center, Rice University and downtown Houston.
The property, constructed in 2010, was purchased by Hines Global Income Trust from Grayco Partners in 2018. 29SC has tapped Haven Residential, its in-house property management company, to oversee management and leasing at Venue Museum District. Hines was represented in the sale to 29SC by David Mitchell with Newmark.
29SC has sold many of the 16 multifamily properties it has acquired in the Houston area. The company currently owns eight residential assets, totaling 2,386 units, in the city, including Venue Museum District. Its other Houston assets include the 320-unit Villas at Hermann Park, located at located at 6301 Almeda Road in downtown Houston; the 350-unit Greenhouse Apartments, located at 2040 Greenhouse Road in the Cinco Ranch submarket; and the 224-unit Helix at Med Center, located at 7200 Almeda Road in the Museum District. The Helix at Med Center was previously known as Lincoln Medical Center Apartments.
“We’ve been really focused on the medical center area in the past 12 months. Our past two acquisitions have been in that pocket,” Burt said.