L
ionstone Investments is set to vacate its 11,000-square-foot headquarters in downtown Houston as it winds down operations. Ameriprise Financial, the parent company, will transfer Lionstone's $5.5 billion in assets to other firms over several months. The closure won't have a significant financial impact on Ameriprise, which is focusing on growing its alternatives business, including real estate ventures in Europe.

    The decision comes after tensions between Lionstone's leadership and Columbia Threadneedle Investments, the Ameriprise subsidiary that acquired Lionstone in 2017. Several key executives, including co-founders Dan Dubrowski and Glenn Lowenstein, have left the company since the acquisition. The firm has invested in several Houston apartment complexes and mixed-use developments.

    The Houston multifamily market is experiencing distress, with foreclosure auctions surging this month. Rising interest rates and tightening credit conditions are contributing to the shift, with Houston ranking fifth in the nation for commercial foreclosures. Despite this, Lionstone recently acquired a 344-unit multifamily building in the River Oaks District, showing faith in the local market.