Adai Investors LLC, represented by local broker Wynn Whitlow, spent $1.3 million for Spring Gardens at 1714 Wirt Rd. and $1.28 million for the adjacent Johanna Apartments at 1715 Johanna Dr. "I don't think he's planning any more investments at this point," Keith Van Arsdale, director in Houston for Dallas-based BMC Capital LP's Southwest operations, tells GlobeSt.com. "I think he just wants to get his hands around what he acquired."

Van Arsdale says the local buyer, who obtained financing representing 80% of the loan to value, made a strong investment in both properties. "The Spring Branch area of Houston, where both apartments are located, is very attractive because it has a strong school district," he adds. "Even when the market was soft, occupancy was still between 86 and 88%." As of now, both occupancies are hovering well above 90%, he says.

The Top 5 lender packaged financing with a 6% fixed-rate interest and 30-year amortization, according to Van Arsdale. "These were not difficult to place due to the Spring Branch market and due to the solid historical performance of the property," he says. "We had multiple lenders interested in financing the deal."

Johanna Apartments is all two-bedroom units that rent for $490 per month. Spring Gardens has 25 one-bedroom apartments with a monthly rent of $480 and 54 two-bedroom units that bring in $553 to $630 per month. The new owner, who intends to manage the properties himself, acquired them from a local seller, Richmore Properties Ltd. Herb Shapiro of Shapiro Associates in Houston represented the seller.