HOUSTON — Fairstead has closed on a $20 million financing package to acquire and renovate Sunflower Terrace, an affordable housing property in Houston. The Houston Housing Finance Corp. (HHFC) also has an ownership stake. R4 Capital was the mortgage lender. Fairstead will lead redevelopment efforts and will serve as the property manager.
Sunflower Terrace consists of 160 units under a project-based Section 8 contract. Homes are reserved for low- and very low-income families, with rents capped at 50 percent of area median income (AMI) for half the units and at 60 percent AMI for the remaining units.
Originally constructed in 1971, the Sunflower Terrace community features a blend of 10 two-story and three-story buildings spread over 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 include a clubhouse, on-site laundry facility, playground, learning center for resident services and a business center.
Fairstead will complete renovations to the common areas, unit interiors, building exteriors, mechanical systems and infrastructure to improve building operating efficiencies and quality of life for the current residents. In-residence upgrades will include new kitchens with updated appliances, countertops and cabinets Bathrooms will be upgraded with new fixtures, faucets, lighting and electrical. Fairstead expects to complete the project by August 2026.