Fairstead has expanded its Houston portfolio with the $242 million purchase and planned reservation of Haverstock Hills Apartments, a 700-unit fully-affordable housing property located in Houston. Fairstead purchased the property from Equality Community Housing in partnership with Harris County Housing Financing Corp.
PNC Multifamily Capital, a longtime Fairstead financing partner, provided $120 million of debt and $82 million of equity for the acquisition. Rainbow Housing Corp. will continue to provide on-site social services at Haverstock Hills. New York-based Fairstead will manage the property.
All the homes are supported by project-based Section 8 contracts and governed by Low-Income Housing Tax Credit affordability restrictions. The community is reserved for residents earning 60 percent and below the Area Median Income.
The 22-acre property at 5619 Aldine Bender Road in Houston’s East Aldine neighborhood was built in 1972 and is comprised of 44 two- and three-story buildings. It has a mix of studios, one-, two- and three-bedroom units ranging in size from 487 to 1,140 square feet. Rents range from $873 to $1,571, with an mean of $1,178, according to Yardi Matrix data.
Extensive renovations planned
Renovations at Haverstock Hills Apartments will begin this winter, with completion slated for early 2028.
“It has been decades since Haverstock has undergone any comprehensive rehabilitation. Because of this, our investment is extensive and focused on fully renovating all units and community spaces, strengthening on-site security and improving resident support through our partnership with Rainbow Housing,” Allan Izzo, senior director, development at Fairstead, told Multi-Housing News. “Our goal is for the entire community to see and feel a meaningful difference once renovations are complete.”
Fairstead said Haverstock Hills will undergo a comprehensive rehabilitation. In-unit enhancements will include new kitchens with energy-efficient stainless steel appliances, updated countertops and cabinetry, upgraded fixtures and faucets in bathrooms, new flooring, freshly painted walls and new LED lighting. Building improvements will include enhanced lighting and electrical systems, window upgrades, facade replacements as well as repainted and improved entrances. The firm will also upgrade mechanical systems and infrastructure to boost operational efficiency and ensure long-term performance.
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Fairstead will also implement significant security upgrades including increased lighting, cameras, access control and the hiring of an additional on-site presence. The company will be working with local law enforcement to further improve safety for residents.
The property will also get new amenities including an updated community building and clubhouse, outdoor playgrounds, upgraded laundry facilities and a business center. Haverstock Hills also has a tennis and pickleball court, basketball court and six swimming pools. The property has a total of 1,100 parking spaces.
Rainbow Housing, a nonprofit supportive service provider, will oversee resident programming following the trades. Services will include K-12 after-school programming, financial literacy and health programs, career training and other recreational and social activities.
Fairstead’s preservation focus
The purpose-driven real estate firm is dedicated to building and preserving affordable communities across the country, often through public-private partnerships. Fairstead currently owns more than 27,000 apartments across 28 states.
The Haverstock Hills purchase is Fairstead’s largest acquisition in Texas, bringing the firm’s total portfolio in the state to more than 2,000 units. Houston is its largest market in the state.
Last summer, Fairstead closed on $20 million for the purchase and rehabilitation of Sunflower Terrace Apartments, a 160-unit affordable housing community in Houston. Fairstead is partnering with R4 Capital and its affiliate R4 Capital Funding along with Houston Housing Finance Corp. to renovate the 1971-built property’s apartments. Under the deal, Fairstead and HHFC are owners, and the former firm is serving as the developer for the renovations, as well as the property manager. Construction at that site is expected to be completed in August of 2026.
In May, Fairstead secured $120 million in financing for the ground-up redevelopment of the Samuel Madden Homes public housing complex in Alexandria, Va., into a new six-story, 207-unit community. The company is rebuilding the property in partnership with the Alexandria Redevelopment and Housing Authority and The Communities Group. Completion is slated for fall of 2027.
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