Auerbach Funds Acquires Park at Cumberland Apartments in Houston
Deal News | May 01, 2025 | EIN
Auerbach Funds and Blue Magma Residential have acquired the Park at Cumberland, a 452-unit multifamily community in Houston, Texas. This deal represents the 12th acquisition in the Auerbach Opportunity Fund IV portfolio. Located at 505 Cypress Station Drive, the property is in North Houston, offering convenient access to major highways and connecting residents to key employment and retail centers. Auerbach Fund plans to implement an extensive renovation program to enhance units and amenities, aiming to revitalize the community amidst a recovering North Houston real estate market. The acquisition capitalizes on current real estate value dislocations, allowing Auerbach to obtain high-quality assets at lower valuations. This deal marks a continuation of a successful partnership with Blue Magma, with both entities sharing a commitment to community development and delivering investor returns. The fund is currently completing its capital raise, with the final closure scheduled in July 2025.
Sectors
- Real Estate
- Private Equity
Geography
- United States – The transaction and all stakeholders are based in the United States, with specific activities occurring in Texas and North Carolina.
- Houston, Texas – The acquired property, Park at Cumberland, is located in Houston, Texas, making it a primary geographic focus of the article.
- Charlotte, North Carolina – Auerbach Funds, the private equity firm involved in the acquisition, is headquartered in Charlotte, North Carolina.
Industry
- Real Estate – The acquisition falls within the real estate sector as it involves the purchase and planned renovation of a multifamily property.
- Private Equity – Auerbach Funds is a private equity firm managing funds for investing in real estate assets, aligning this transaction with the private equity industry.
Financials
- 12th asset – This acquisition represents the 12th asset of the Auerbach Opportunity Fund IV, LP portfolio.
- $1.09 billion – The total asset value acquired by Auerbach Funds since its founding.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Auerbach Funds | Buyer | Company | A Charlotte, NC-based real estate private equity fund manager acquiring distressed or underperforming real estate assets across the U.S. |
| Blue Magma Residential | Buyer | Company | A partner company working with Auerbach Funds on the acquisition of the Park at Cumberland apartments. |
| Park at Cumberland Apartments | Target | Company | A 452-unit garden-style multifamily apartment complex in Houston, Texas. |
| Peter Auerbach | Managing Partner | Person | Founder and Managing Partner of Auerbach Funds, involved in managing acquisitions and partnerships. |
| Cole Watson | Director | Person | Director at Auerbach Funds, overseeing transactions and contributing to strategic decisions. |