Fairstead closed a $20 million investment for the acquisition and rehabilitation of Sunflower Terrace Apartments, a multi-building housing complex in Houston.
In partnership with R4 Capital, its mortgage lending affiliate R4 Capital Funding, and the Houston Housing Finance Corporation (HHFC), the property consists of 160 affordable housing units under a project-based Section 8 contract. The project will be reserved for low- and very low-income families, with rents capped at 50% Area Median Income (AMI) for half of the units and at 60% AMI for the remaining units.
The Sunflower Terrace transaction marks Fairstead’s third community in Houston and affirms the company’s ongoing commitment to delivering quality affordable housing in cities with the greatest need. Located at 5050 Sunflower Street in the city’s southern Sunnyside neighborhood, the property expands Fairstead’s footprint south of its existing Coppertree Village and Yale Village Apartments, which have collectively received more than $40 million in rehabilitation investments since 2022.
With the acquisition of Sunflower Terrace, Fairstead assumes the role of owner alongside its valued partner HHFC. Fairstead will also take over duties as developer and property manager. Today, Fairstead’s national footprint exceeds 25,000 affordable homes across 28 states, with its Houston portfolio set to grow to over 1,000 in-market units by the end of 2025.
Originally constructed in 1971, the Sunflower Terrace Apartments community features a blend of 10 two-story and three-story buildings spread across seven acres. The property consists of 24 one-bedroom residences, 72 two-bedroom residences, 52 three-bedroom residences, and 12 four-bedroom residences. Amenities at the community comprise of a clubhouse, on-site laundry facility, playground, learning center for resident services, and a business center, all designed to offer all-encompassing support to residents.
Comprehensive renovations include the common areas, unit interiors, building exteriors, mechanical systems, and site infrastructure to improve building operating efficiencies and quality of living for the current residents. In-residence upgrades will include new kitchens with updated appliances, countertops, and cabinets, while bathrooms will be upgraded with new fixtures and faucets, lighting and electrical, and more.
Construction at the Sunflower Terrace Apartments will commence in the summer of 2025, with completion projected for August 2026.
