Venterra Realty Management Co., headquartered in Webster, and Lehman Brothers teamed on the buy from the Southeast Texas Housing Authority. Greg Finch, Venterra's president, tells GlobeSt.com that the firm will buy up to 2,000 more units in its target markets of Houston and San Antonio before the year ends. The portfolio now numbers above 5,000 units, mostly "well-located, solid B class properties," Finch says.

The non-profit agency sold the 1,006-unit Pavilion Place Apartments, a 25-year-old development at 5402 Renwick Dr. in Houston's southwest submarket; 696-unit Sandstone Apartments, a 23-year-old project at 4201 Fairmont Parkway in Pasadena, southeast of Houston; and the 688-unit Bayou Park Apartments, a 33-year-old community at 4400 Memorial Dr. on Houston's West Side.

Finch says the plan is to sink about $5 million into renovations in a repositioning play to raise rents and occupancies. He expects a 3% to 5% rent hike will trail the renovations.Pavilion Place is 85% occupied with rent averaging 65 cents per sf. The 96%-leased Sandstone has an average rent of 70 cents per sf while the 91%-occupied Bayou Park is averaging $1 per sf.

Finch, who did his own negotiating, says the properties attracted lots of offers. David Oelfke and Carter Bechtol of Southwest Residential Partners in Houston were the listing agents.