Gaia Real Estate with partners Menora Mivtachim and Grand China to buy 252 units

Houston, TX Gaia Real Estate, with its partners Menora Mivtachim Insurance and Grand China Fund, have closed on the sale of Cypress Commons, their second disposition for the partnership within two months.

Cypress Commons is a well-maintained, class A community constructed in 1999. The 252-unit property has a clubhouse, resort-style swimming pool, putting green, picnic area with gas and charcoal grills, 24/7 fitness center, a walking/jogging trail, car care center, and a cyber-café.

Cypress Commons is located in the Champions submarket of Northwest Houston and is bookended by exclusive country club golf courses and next to The Vintage, a $1 billion mixed-use development that has transformed the local area. The property is near large concentrations of medical, educational, and high-tech employers.

The property was the recent recipient of a capital improvement program to enhance exteriors and amenities. Additionally, 17% of units received an interior renovation and, on those units, Gaia was able to achieve significant rental premiums.

“Cypress Commons was acquired as part of a 9-property portfolio of similar class A assets, at a basis well below replacement cost. This property disposition represents the second asset sale from that portfolio. Our generated returns on this transaction generated an IRR in excess of 52% for our investors,” said Gaia’s managing partner Danny Fishman. “We‘ll continue to execute our business plan across the portfolio by streamlining operations, improving the properties, and creating a desirable living experience for our residents.” 

Gaia has been an active investor in the value-add space, seeking under-performing assets in order to perform value-add physical and operational improvements. In addition to these assets, Gaia recently acquired a 5-property, 1376-unit portfolio in conjunction with Menora and another capital partner.