HOUSTON-A California full-service real estate investment company, impressed with the growth of the Houston market, has made its first multifamily property acquisition in the area, the class A, 504-unit Villa Toscana in Northwest Houston.

The property, located at 9125 Hwy. 6 North and sold by UDR Texas Properties II, CP, an affiliate of Richmond, VA-based United Dominion Realty Trust, had a list price of $43.15 million and is 100% occupied.

"This is a great property," says William H. Winn, president of Irvine, CA-based Passco Cos., LLC, which purchased the property. "It's class A, newly constructed, with a recently completed lease-up in August." The location, he adds, was also an incentive to purchase. "It's in a growing area in Houston, near the freeway."

Winn tells GlobeSt.com that Villa Toscana represents first of three multifamily property acquisitions for Passco in the Houston area, with closings anticipated on the other two within the next three months. He adds that the acquisitions are part of the company's overall $300 million goal to purchase 3,000 units nationwide by the end of 2006.

Winn says that Houston is a strong market and a good investment for many reasons. "The historical rent growth is pretty consistent, and the population and job growth strong," he says.

Additionally, the migration from New Orleans because of Hurricane Katrina has led to an improvement in Houston's multifamily market. "When we first put Villa Toscana under contract, occupancy was in the low 90s," Winn says. "Now it's 100%, and we think it's going to stay that way for awhile."

Constructed in 2004 and 2005 and situated on 23.96 acres, the property offers 268 one-bedroom units, ranging in size between 640 sf and 895 sf, at a monthly rent of $647 to $826; 204 two-bedroom units, measuring between 1,043 sf and 1,198 sf; at a monthly rent of $925 to $1,119; and 32 three-bedroom units at 1,341 sf, at a monthly rent of $1,259. Todd Stewart and Todd Marix of CB Richard Ellis Co.'s Houston office brokered the transaction for both sides.