Sade Real Estate is preparing an $11 million renovation program for its recently acquired apartment high-rise in Houston. The 40-story tower, located at 2929 Weslayan St., sits between the River Oaks and Greenway Plaza areas and has been rebranded as The Arno. While the acquisition price for the property was not disclosed, the buyer secured a $128.5 million loan from Hudson Bay Capital to complete the purchase.
The Arno comprises 168 residential units in a mix of one-, two- and three-bedroom apartments along with penthouse residences. According to information released with the renovation announcement, rents at the property start at $2,250 per month, positioning the building at the higher end of the local multifamily rental spectrum. The planned capital program is focused on common areas and building systems rather than on structural expansion or repositioning to a different use.
As part of the $11 million improvement plan, Sade Real Estate intends to upgrade the eighth-floor dining and fitness facilities, which serve as key shared amenities for residents. Enhancements to the building’s roof are also included in the scope of work, indicating a combination of functional and aesthetic improvements. The renovations are designed to refresh existing offerings at the tower rather than alter the asset’s core multifamily use.
To execute the design component of the renovation program, Sade Real Estate has engaged the Houston office of architecture and engineering firm Pvedi. The firm will be responsible for planning and designing the updates to the amenity spaces and roof. No additional partners, property managers or operators were identified in connection with the project, and no details were provided regarding construction timelines or phasing.
The financing package for the acquisition, a $128.5 million loan from Hudson Bay Capital, underscores the use of substantial debt capital in conjunction with the planned $11 million in upgrades. The combination of a large acquisition loan and a targeted renovation budget reflects an approach focused on enhancing an existing multifamily high-rise in a well-known Houston corridor. Further information on loan terms, overall project cost and leasing performance at The Arno was not disclosed in the available materials.
