Rockspring Capital, a privately-owned real estate investment firm headquartered in Houston, today announced the sale of a 4-acre site in Houston located at the corner of Yale St. and the North Loop 610 within the highly valued Garden Oaks and Greater Heights neighborhoods.
“We knew the high return potential when purchasing this property seven months ago from an out of state seller as the surrounding neighborhoods were rapidly appreciating in value,” said Jim McAlister IV, President and CEO of Rockspring Capital. “Not only were we able to exit the property quickly at a premium price, but the existing tenant lease income provided additional cash flow to our partners during the hold period.”
This was a unique investment compared to the firm’s traditional acquisition strategy of acquiring land sites and working through the entitlement and planning processes. The site is situated among multiple single-family and commercial developments four miles northwest of downtown and a short drive away from the prestigious schools, St. Pius X High School and Garden Oaks Christian Academy.
“We refer to these types of acquisitions as covered land plays. They are typically an income producing asset with a tenant lease generating positive cash flow, however the plan is to tear down the existing structure and sell to a developer that will redevelop the property for a higher and better use.,” said J. Beau Ryan Senior Vice President and COO of Rockspring Capital. “We currently have a number of similar properties under due diligence. Our investment partners are very pleased with the way this deal worked out.”