Atlanta-based Cortland sees a lot of opportunity in Villas River Oaks, a 288-unit apartment community in the heart of Houston's historic River Oaks neighborhood. 

Kyle Bateh, co-portfolio manager and executive vice president of investments for the Atlanta-based multifamily real estate investment, development and management company, called the property “a quiet oasis amidst the bustle of vibrant Houston,” in a press release shared with Multifamily Dive announcing the deal earlier this month.

The three-story property, built in 1998, is within walking distance of a Whole Foods store and is directly across the street from Buffalo Bayou, a waterway with green spaces, jogging trails and a dog park.  

“The location and the community itself present a compelling opportunity that checks a lot of boxes,” Bateh told Multifamily Dive. “The location is fundamentally good with great area demographics, affluent residents and great connectivity to jobs, culture, hospitals and parks and entertainment.”

After purchasing the property in July for an undisclosed amount, Cortland renamed it Cortland River Oaks. But the changes don’t end there. The firm also plans to add new flooring, appliances, kitchen fixtures and finishes and smart-home features to the apartments. 

“The community has been well maintained and has good bones, but the unit interiors themselves have become dated over time and are in need of an upfit,” Bateh said. 

Resident demands

Bateh said the typical resident in the River Oaks neighborhood desires modern finishes and features. However, mid-rise and high-rise apartment buildings are most likely to offer those features.

“By investing in new finishes for the unit interiors, we are filling a much-needed gap for lower-density, more affordable luxury living, and that's the key element that attracted us to this investment,” Bateh said.

Cortland River Oaks has one- and two-bedroom apartments ranging from 625 to 1,200 square feet. It has a two-story clubhouse and leasing center, fitness center, resort-style pool deck, multiple grills, shaded areas and a community garden.  The firm also plans landscaping and amenity upgrades.

Cortland now owns and operates 17 properties in Houston alone and 68 assets with nearly 25,000 units across Texas. The company ranks No. 8 nationally with 74,831 apartments.

Bateh said Cortland will remain an active buyer in the second half of 2024 as the multifamily sales market picks up overall.

“There is still a lot of dry powder on the sidelines and while there are a lot of headlines about distress in commercial real estate, the institutional apartment space is fairly insulated, and the fundamentals for our space are holding up well in the face of historically high new supply,” Bateh said.

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