Biotech Company Expands into Houston Multifamily to Boost Revenue During Stock Decline

Windtree Therapeutics, a biotech company based in Pennsylvania, has taken an unexpected step into the multifamily real estate market in Houston by acquiring a 436-unit property. The purchase was made from Way Maker Growth Fund for $43 million through the company’s subsidiary, WINT Real Estate. The decision to venture into real estate was driven by Windtree’s desire to diversify its assets and achieve financial stability in light of recent stock price declines.

CEO Jed Latkin expressed that the company aims to reduce its dependence on potentially dilutive capital by seeking out stable revenue streams through real estate investments. This strategic move comes after Windtree Therapeutics experienced a significant drop in its stock value earlier this year. By acquiring smaller companies and expanding into new sectors such as real estate, the company hopes to regain its financial foothold and prevent further stock devaluation.

The acquisition of The Aubrey apartment complex in Houston aligns with Windtree’s broader strategy of generating revenue while continuing to develop innovative medical treatments. The company’s focus remains on creating advanced therapies for various critical conditions, including cardiogenic shock, heart failure, and cancer. The real estate investment is seen as a means of securing consistent income amidst ongoing research and development efforts in the pharmaceutical sector.

The completion of the purchase is contingent upon thorough due diligence and finalizing financing arrangements, with the closing date scheduled for May 23. Windtree plans to use a combination of nonrecourse debt and stock proceeds to fund the acquisition, as outlined in a recent SEC filing. The Aubrey, a Class-B apartment complex comprising 46 buildings, holds an estimated value of $35 million according to Harris Central Appraisal District records.

While Windtree views the acquisition as a lucrative opportunity for stable revenue, the Houston multifamily market has faced significant challenges in recent years. A substantial amount of multifamily properties, totaling nearly $400 million, were slated for foreclosure auction in Harris County last year. Despite these market conditions, Windtree remains optimistic about its foray into multifamily real estate and the potential returns it can offer alongside its core biotech operations.

Through strategic diversification and prudent investment decisions, Windtree Therapeutics aims to navigate the complexities of the financial landscape and secure a sustainable future for the company. As it delves into the Houston multifamily market, Windtree continues to prioritize innovation in medical research while also exploring new avenues for revenue generation and long-term growth.