The 32-year-old Park on Voss at 2424 S. Voss Rd. was sold by Oakwood Properties-San Jose North LP, led by Oakwood Worldwide of Los Angeles. The deal's broker, Jim Hearn with the Houston office of Hendricks & Partners, tells GlobeSt.com that Oakwood sold the three-story building in an ongoing divestiture of older properties. The capital gain will be reinvested into a newer property, he says.

According to Hearn, the closing price was slightly less than the $39-million asking ticket. The buyers, who were up against eight to 10 other offers, closed the acquisition by tapping the Sterling American Property Fund III LP, which has spent $460 million to acquire 24 US assets in the last three years.

In keeping with its past JVs with Sterling American, BH Management will manage the Park on Voss as well as have an equity position in the holding, explains Pamela Muller, Sterling American's head of marketing. Sterling American's entire Texas multifamily portfolio--4,238 units in Houston, Austin, Dallas, San Antonio and Tyler--is the result of JVs with BH Management. The Park on Voss marks their fourth and largest acquisition in Harris County.

Charles Skolnick, a senior associate for Sterling American, says the plan now is to spend about $4.9 million or $4,300 per unit to rehab the Park on Voss. Interior improvements are forthcoming for apartments, the clubhouse, leasing office, fitness center, business center and conference room. The exterior upgrades will include a new roof, elevators, landscaping and signs. According to Muller, construction will begin in three months on the exterior and common areas, with completion anticipated in nine months. Apartments will be upgraded as leases roll.

Tarak Patolia, Sterling American's senior vice president and chief of acquisitions, said in a press release that the company "is confident about the long-term stability of Houston's residential market and we continue to pursue investment opportunities here." Going forward, the complex's name likely will change in keeping with the firm's "value enhancement strategy," which includes upgrades and a new marketing plan. "This will greatly enhance the property's image in the marketplace," he said, adding the end result will be increased rents and occupancy levels.

The 87%-leased Park on Voss rents for $500 per month for an efficiency to $900 per month for a two-bedroom apartment. Muller says the company hopes to ante up the average rent to $721 from $633 per month after the renovation. Berkshire Mortgage Finance provided the financing, which was arranged by Sterling American's finance manager, Anthony Sferazza.