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Nitya Capital Closes Sale of Four Multifamily Properties in Texas

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Nitya Capital Exits Three Assets in Texas Delivering Strong Returns

Houston-Based Investment Firm Achives Oves 77 Successful Exits in the Last Decade

HOUSTON – (BUSINESS WIRE) – Nitya Capital, the international real estate investment firm headquartered in Houston, has recently concluded the sale of three multifamily properties in both the Austin and Houston regions. These transactions contribute to Nitya’s growing record of 77 property exits valued in excess of $2.5bn since its establishment in July 2013, solidifying its standing in the real estate investment sector.  

“Our 3-asset portfolio has delivered an impressive 1.5x equity multiple return to our investors. These exits are truly reflective of our value proposition in this space of creating value at the asset level through physical upgrades and operational efficiencies,” stated Swapnil Agarwal, CEO and Founder of Nitya Capital. “Despite the challenging capital market environment, characterized by a nationwide slowdown in acquisition and disposition activities, our dedicated team has adeptly managed high interest rates and inflation to achieve these remarkable returns, ensuring vital liquidity for our valued investors. With these recent exits, we maintain an impeccable record of 77-0, boasting an average IRR of over 25% across these 77 sales.”  

  The strategic property acquisitions by Nitya Capital in 2018 paved the way for an ownership transition in September 2023, when Disrupt Equity assumed control of the following three properties:  

  • Treehouse Apartments located in Austin, Texas has 297 units  
  • Waterstone Place located in Fort Bend, Houston, has 168 units.  
  • Stonecreek Apartments, located in Harris County, Houston, has 208 units.  

  Over the years, Nitya Capital diligently improved these properties through various enhancements, including interior and exterior upgrades, pool renovations, kitchen modernization, and the introduction of community amenities.  

  Nitya owns and manages a robust portfolio of 54 assets that include multifamily, student housing, and commercial properties. As we diligently enhance their value, we’ll remain vigilant in assessing market conditions for well-timed strategic decisions. Our outlook for 2024 anticipates the pursuit of highly profitable opportunities.  

  Nitya marked a decade of growth, innovation, and success earlier this year. Looking ahead, the company remains committed to its vision of sustained triumph, aiming to continue its legacy of excellence well into the next decade. Nitya Capital’s ability to adapt and thrive in ever-evolving real estate markets is a testament to its enduring strength and unwavering dedication to its investors.  

Read more at: https://nityacapital.com/nitya-capital-exits-three-assets-in-texas-delivering-strong-returns/

Published on 11/2/2023 – List all Blogs

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Nitya Capital Closes Sale of Four Multifamily Properties in Texas

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Nitya Capital Closes Sale of Four Multifamily Properties in Texas

The Houston Based Investment Firm Has Completed More Than 70 Exits in the Past 10 Years

HOUSTON – (BUSINESS WIRE) – Nitya Capital, an international real estate investment firm headquartered in Houston, today announced the sale of four multifamily properties across the Dallas, Austin and San Antonio regions. These most recent deals total 73 property exits for Nitya since the company was founded in July 2013.

Since its inception, Nitya has closed more than $8B in transactions including $4.2B in acquisitions, $2.4B in exits and $1.7B in recapitalizations. These four recent sales bring Nitya’s total exits to 73 of its 129 total properties purchased in its 10-year lifespan.

“These recent deals embody the success our company and investment partners have achieved since I first started this company,” said Swapnil Agarwal, CEO and Founder of Nitya Capital. “I am extremely proud of our team for the longstanding success we’ve had as we near our 10-year anniversary. The U.S. real estate sector has seen a slowdown since late last year, but our team continues to execute at a high level and identify the bright spots in multifamily investing. Once the sector rebounds completely we will be well positioned to pursue more opportunistic deals in the Sunbelt states and other high growth areas.”

All four sold properties – listed below – were acquired by Nitya within the last four years. During that timeframe, the firm added value to the assets, which included interior and exterior upgrades, pool renovations, new kitchen renovations, new leasing office, new community amenities and much more.

• Candlelight Park Apartments located in Duncanville, Texas (a suburb southwest of Dallas) has 128 units and was purchased by Lone Star Capital in March 2023
• Terrain at Medical Center located in San Antonio’s South Texas Medical Center (northwest of the city) has 224 units and was purchased by Nord Group in March 2023
• Latitude Apartments, also located in San Antonio’s South Texas Medical Center, has 268 units and was purchased by Nord Group in March 2023
• Park at Crestview, located in north Austin, has 248 units and was purchased by Nord Group in April 2023

These exits follow similar sales of several Texas properties conducted by Nitya last year, when the firm predicted a slowdown in the real estate market. Following last year’s deals, the firm acquired diverse, newer multifamily properties in high growth markets – i.e., Florida, Tennessee and Indiana – while costs in those regions were still opportunistic.

“Our activity in 2022 helped us create a more lucrative portfolio for our firm and partners in 2023,” continued Agarwal. “We are sitting on a very strong set of multifamily properties. As we continue adding value to our portfolio, we’ll continue to monitor market conditions for the right time to make moves.”

Nitya will be formally announcing its 10-year anniversary celebration in July as it looks back at its growth, successes and the teams that helped it scale up to the international firm that it is today. Nitya looks to continue its successes well into the next decade.

Read more at: https://nityacapital.com/nitya-capital-closes-sale-of-four-multifamily-properties-in-texas/

Published on 5/15/2023 – List all Blogs

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Multifamily Investing In A Recession-Prone Environment

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Multifamily Investing In A Recession-Prone Environment

Word has spread across various channels warning of a potential recession on the horizon. While none of us are sure which way the wind will blow, the Federal Reserve has recently raised federal rates amid inflation’s 40-year peak. Market fluctuations have also grown significantly more volatile, with economists predicting a 60% probability (subscription required) of a recession within the next 12 months. Suffice it to say, a severe market decline is a potential reality that we all must bear the burden of withstanding, especially in questioning where we choose to invest. Let’s explore different possibilities to find stability through multifamily investing amid the shaky tide of net losses and gains.

Learning From The Past

We should all be well acquainted with troublesome economic patterns given our previous exposure a little over a decade ago. The example of 2007-2008 laid the groundwork to help investors withstand a future economic downturn. In recent years, modern multifamily investment has displayed an even more significant degree of growth and stability than one would initially expect in the wake of the Covid-19 pandemic. In the past, I’ve claimed that real estate investing’s most vital attributes include generational shifts, impacts on demand, supply shocks and investor demand.

Real estate investing displays striking recession-resistant features, one of which is the intrinsic human need for affordable housing options regardless of bull or bear market status. Housing is a fundamental human requirement and, when faced with the prospect of a downturn, many risk-averse individuals choose to continue renting rather than explore the economic stresses of homeownership. Today, we’re seeing that home prices have not decreased, while interest and mortgage rates have gone up significantly compared to even months ago. Some analytics have found that the average single-family home is 43.7% more expensive than it was in 2019. Additionally, when markets weaken, former homeowners often return to the rental market as a haven from foreclosure. Add this to a slackening wave of labor required for homebuilding, and it’s very easy to see how demand might swing in real estate’s favor for flexible investment.

When we examine the previous economic downturn’s ripple effects, reports indicate only a 7.9% cumulative rent decline in multifamily, contrasted to 17% in industrial/office rent and approximately 14% in retail. And that doesn’t account for the state of real estate at that point in history compared to today’s sounder, more technologically advanced footing. In our modern economy, residential apartments possess an extremely handy quirk in dealing with inflation. If inflation is high, rent growth will increase as well because rents make up 40% of the consumer price index.

New Residential Spaces

Class A real estate typically yields solid returns when centrally located in walkable, urban areas surrounded by amenities, providing a sense of both cost-effective and convenient living to future tenants. Multifamily’s durability, practicality and adaptability across divisions all cement it as a major marker for profit growth regardless of downward shifts in the global economy at large.

In recent years, I’ve additionally seen a high degree of success in off-campus student housing. The need for new residential spaces close to major universities, thanks to the ever-increasing importance placed in higher education, has remained a growing trend throughout the decade. Even more striking, overall occupancy volume has bounced back very quickly even in the face of unprecedented global circumstances. Following the effects of the Covid-19 pandemic, occupancy rates initially declined. But subsequently, they rebounded to higher than pre-Covid levels for the 2021-2022 school year. Even in the previous financial crisis, student housing seemed to prosper overall, with university enrollment growing consistently throughout 2007-2009.

The off-campus student housing market is expanding further, with steadily growing enrollment in the largest universities. Student housing has great supply-demand metrics, with excellent visibility given its pre-lease environment, offering a safe hedge for investors looking for low-risk, resilient pursuits. Investors are enjoying the high rent growth that multifamily and student housing provide because of the short-term nature of their leases.

Final Thoughts

The right real estate investment opportunity is comprehensive, aims to generate strong income streams and ultimately preserves wealth across economic cycles. Investors are rightfully cautious when it comes to their financial pursuits, but there is also plenty of room for exploration, operational trust and attention placed on the more intimate human-oriented details that shape the need for places to live. Ultimately, carefully selected real estate ventures have the potential to allow investors to reap the benefits of long-term wealth creation even through periods of economic uncertainty.

The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

The original article with Forbes can be found here: https://www.forbes.com/sites/forbesbusinesscouncil/2022/11/04/multifamily-investing-in-a-recession-prone-environment/?sh=3132d95756e1

Published on 11/4/2021 

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