1. No category

4/1/2015
PPA Group's private equity firm Casoro Capital launches fund targeting Houston apartment market ­ Houston Business Journal
From the Houston Business Journal
:http://www.bizjournals.com/houston/morning_call/2015/03/new­private­
equity­firm­eyes­houston­apartment.html
New private equity firm eyes Houston
apartment market
Mar 30, 2015, 8:24am CDT
Paul Takahashi
Reporter­ Houston Business Journal
Email | Twitter
A new Austin­based private equity company has set its eyes on Houston’s apartment market.
Casoro Capital LLC, a new real estate investment firm based in Austin, plans to raise $50
million in private equity to acquire Class B and C apartments in Austin, Dallas, Houston and San
Antonio. The new fund — Casoro Capital Real Estate Fund I LP — will target high net worth
individuals, family offices and public institutions, like state and city employee pension funds.
Casoro Capital is in negotiations to purchase several Class B and C apartments in greater
Houston, said William Papp, the company’s managing director. He could not disclose any
details about pending contract negotiations.
“We pride ourselves on knowing our local markets,” Papp told the Houston Business Journal.
“We really feel comfortable in the C and B market. There are some issues going on in the oil
and gas industry, but our analysis tells us that the C and B market has not been impacted as it
relates to occupancy and concessions.”
Start your day with Houston Business Journal news in your inbox. Sign up for
Morning Edition here.
The fund’s investment strategy will be three­fold, Papp said.
Value­add: Casoro Capital would purchase an apartment, renovate the property and sell
the complex after three to five years. These renovations can range from new paint and
carpet to a major overhaul of cabinets and countertops as well as addition of new
amenities, like dog parks.
Core­plus: Casoro Capital would acquire an apartment; tweak the property, operations
and management; and then sell the property.
http://www.bizjournals.com/houston/morning_call/2015/03/new­private­equity­firm­eyes­houston­apartment.html?s=print
1/2
4/1/2015
PPA Group's private equity firm Casoro Capital launches fund targeting Houston apartment market ­ Houston Business Journal
Opportunistic: Casoro Capital would buy apartments out of bankruptcy, or fund new
apartment development if it’s cheaper to build than to buy.
“The majority of funds will go to value­added projects,” Papp said. “Our bread and butter is
buying C and B properties, fixing them right and then selling them.”
Casoro Capital was recently formed by The PPA Group, a privately­held commercial real
estate company that has been developing, managing and investing in multifamily properties
throughout Texas since 2005. The parent company currently owns and operates 10 multifamily
properties and manages 3,000 apartment units as a third­party property manager.
The PPA Group is a fast­growing, vertically integrated company that operates its own
construction and property management billing firms. The company recently decided to launch a
new investment arm focused on private equity real estate as a result of Texas' hot real estate
market, Papp said.
“It made sense to roll out a separate division as it relates to our own private equity real estate
group,” Papp said. “We’ll be leaning on PPA’s experience as it relates to property acquisition as
well as property management.”
The PPA Group hired Papp in December to head up Casoro Capital and its new fund. The
Boston transplant has more than 20 years of experience in global equity capital markets and
asset management at Beachhead Capital Management, Mizuho Securities USA, Prudential
Equity Group and Lehman Brothers. The Michigan State University and Tufts University
graduate also served on several Massachusetts investment boards and funds. As Casoro
Capital’s managing director, Papp is responsible for business development and investor
relations.
Paul Takahashi covers residential and multifamily commercial real estate for the
Houston Business Journal. Follow him on Twitter for more.
http://www.bizjournals.com/houston/morning_call/2015/03/new­private­equity­firm­eyes­houston­apartment.html?s=print
2/2