HOUSTON-Looking to shore up its holding in the Kingwood-Atascocita submarket, local real estate developer Midway Cos. and a joint venture partner have bought the 300-unit AMLI at King's Harbor. The four-year-old complex abuts a $50-million, mixed-use development that Midway has under construction.

Midway teamed with Chancellor Property Management of Houston to acquire the 4630 Magnolia Cove Dr. property. The JV paid close to the $25-million list, according to David Mitchell, vice president of Apartment Realty Advisors' Houston group, which brokered the transaction for the buyers and seller, AMLI Residential Properties Trust of Chicago.

Mitchell tells GlobeSt.com that Midway's under-construction King's Harbor Place is one reason why the joint venture made sure it beat the 25 other offers placed for the 15.1-acre property. "We knew they liked the area. And by Midway taking control of King's Harbor, either by themselves or through a joint venture, they could make sure they had further control in the area and that the apartment complex wouldn't be bought by someone else that might let it become run-down," Mitchell says, "It's a good combination, having the apartment units next door to the mixed-use property."

Midway's abutting development, with the first phase set to deliver in the first quarter, will consist of 36 condos, 33 brownstones, 30,000 sf of office space, 75,000 sf of retail and four restaurants. The development is the only commercial space along Lake Houston. Mitchell says, to his knowledge, the JV has no intention of converting the just-bought apartment complex into condominium units.

AMLI, in the meantime, was ready to sell the property and move on. "The historic way in which AMLI works, is that they'll develop or buy properties, hold them for two to five years, then turn around and sell them," Mitchell says. "This doesn't mean they're leaving the Houston area. In fact, they're looking at more deals in Houston right now."

The complex, which is roughly 90% filled, has 210 one-bedroom units, measuring 696 sf to 1,037 sf; and 90 two-bedroom apartments, ranging from 1,170 sf to 1,267 sf. Rents start at $728 and go up to $1,288 per month.