ASREF’s $3.9M investment renovated a 309-unit affordable housing complex in Pasadena, Texas.
The Life at Park View is a 309-unit apartment building in Harris County, Texas. Built in 1972, this complex is in a working-class suburb in southeast Houston that is close to the Houston Ship Channel, petroleum refineries and processing facilities.The apartment has a Land Use Restrictive Agreement (LURA) that requires that 100% of the units be affordable to individuals making less than 60% AMI. Prior to Olive Tree Holdings acquiring it, the property had not had a major renovation in 25 years.
Olive Tree Holdings redeveloped the building, replaced management, completed renovation work and implemented tenant selection and retention techniques. The redevelopment addressed deferred maintenance and improved exteriors, communal areas and landscape. In addition, the developer provided smart home security systems and a leasing center/clubhouse. Despite the significant site improvements, Olive Tree Holdings maintains the rent at affordable rates. On May 27, 2021 ASREF exited the project through permanent financing provided by the HUD 223f program.
| Asset Type | Residential |
| Development Type | Renovation |
| Previous Use | Residence |
| Investment Closing Date | 2019-04-30 |
| Total Development Area | 10.1 acres (439,956 SF) |
| Construction Timeframe | Start: Aug 2019; Finish: Feb 2020 |
$15.5M
$15.5M
$3.9M
$1.1M
$5.0M
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OLIVE TREE HOLDINGS is a New York based multifamily owner that targets blighted properties in highly impoverished neighborhoods and implements a business plan across its portfolio to help increase occupancy and retention and reduce crime. The current portfolio consists of 16 properties in metro-Atlanta and seven in metro-Houston. Olive Tree’s disciplined approach focuses on uncovering undervalued investment typically due to poor management, deferred maintenance, market mispricing or a combination of each.
| Location | 2730 Lafferty Rd., Pasadena, Harris County, TX, 77502 |
| Area | Pasadena |
| LMI Community Status | Low |
| Unemployment Rate | 15% |
| Poverty Rate | 32% |
| % Minority | 82% (11% African American) |
The Life at Park View is in Pasadena, a working-class suburb close to the metropolitan city of Houston. It is a predominately minority area (82.4%) with 32.0% poverty, more than double the state’s poverty rate of 14.7%.
The apartment complex is located within a Low-Income census tract. Residents of The Life at Park View Apartments have a median income of $21,372. This is low compared to the median income within a one-mile radius ($42,079), and even lower compared to the median income of Texas ($59,206). Surrounding residential housing in this LMI area features older single-family homes and a large mobile home park across Perla Road.
ASREF’s $3.9 million preferred equity investment in The Life at Park View Apartaments preserves the avaliability of quality aff ordable housing in an LMI area. The redevelopment improved the quality of the asset which has not had a major renovation in over two decades.
