Fairstead Secures 2 Million Financing for Haverstock Hills Apartments in Houston
Real estate investment firm Fairstead has announced a significant financial milestone, securing a robust financing package amounting to 2 million aimed at acquiring and rehabilitating the Haverstock Hills Apartments. Located in Houston’s East Aldine neighborhood, this transaction highlights Fairstead’s commitment to providing affordable housing solutions in a rapidly growing urban market.
The financing structure for this ambitious project is composed of 0 million in debt and million in equity, provided by PNC Multifamily Capital. This investment supports the overall acquisition price of 2 million for the 700-unit complex, which currently operates under Section 8 contracts in partnership with the Harris County Housing Financing Corporation.
According to Noah Hale, managing director at Fairstead, Haverstock Hills Apartments boasts a rich historical context, having been constructed in 1975. Hale characterized the property as a “mini city,” noting its vast scale and its critical role in the local community. “This is a 100 percent fully subsidized property that has a high concentration of extremely vulnerable family households. It features large bedroom sizes and multiple buildings,” he explained, emphasizing the need for stable housing options for families in the region.
Situated at 5619 Aldine Bender Road, approximately 15 miles north of Downtown Houston, Haverstock Hills encompasses 22 acres and features 44 two- and three-story buildings. All units are designated for families earning no more than 60% of the area median income, aligning with Fairstead’s mission to enhance affordability in a city experiencing rapid growth.
As part of Fairstead’s acquisition strategy, comprehensive renovations are planned for the property, which has not seen significant upgrades in nearly two decades. Proposed enhancements include exterior improvements, revitalization of common areas, and the installation of modern security measures, such as enhanced lighting and surveillance cameras. Fairstead aims to complete these renovations by early 2028.
Additionally, Fairstead is collaborating with the Rainbow Housing Assistance Corporation to offer on-site social services that encompass essential support programs. These initiatives will include after-school activities for students from kindergarten through 12th grade, financial literacy workshops, career training, and health-focused initiatives, underscoring Fairstead’s commitment not only to housing but also to community development.
With this acquisition, Fairstead’s affordable housing portfolio in Houston now exceeds 2,000 units, contributing to a national portfolio of over 27,000 units across 28 states. Allan Izzo, senior director of development at Fairstead, remarked on the significance of the Houston market, stating, “Houston continues to experience strong in-migration population growth and economic resiliency. We look forward to our ongoing collaboration with city officials and community partners to identify pathways to narrow the housing affordability gap for essential workers and growing families in the area.”
The financing package for Haverstock Hills Apartments not only marks a significant step for Fairstead but also emphasizes the persistent demand for affordable housing solutions in urban environments across the United States. PNC Multifamily Capital did not respond immediately for comment.
This strategic acquisition by Fairstead underscores the growing emphasis on affordable housing as cities grapple with the challenges posed by rising living costs and an increasing population. The complex renovation efforts anticipated for Haverstock Hills may set a precedent for future developments aimed at revitalizing affordable housing in the dynamic Houston area.