SEABROOK, TX-Dial Equities Inc. has staked its first claim in South Texas, getting a 216-unit complex with frontage along NASA Road 1 and views of Clear Lake. Based on the deal's dynamics, the final price undoubtedly came within striking distance of the $11.2-million ask.

The Omaha-based buyer has picked up a class B value-add play, with half of the units already renovated in Edgelake at 3010 NASA Rd. 1 and each generating an additional $50 per month for the bottom line, according to Russell Jones, vice president for Apartment Realty Advisors in Houston. He tells GlobeSt.com that Dial will finish the $2,500-per-unit renovation and bump rents accordingly.

The 92%-leased Edgelake has one- and two-bedroom units, averaging 742 sf. Renovated units are averaging 93 cents per sf in rent; the unfinished stack is bringing in 86 cents per sf, the ARA broker says.

Jones says the 20-building complex, positioned on 8.47 acres, was on the market less than one month, reeling in 18 offers for Dallas-based Archon Group's last asset in the region. The location was the chief selling point: five miles to Kemah Boardwalk, five miles to NASA's Johnson Space Center and five miles to the Port of Houston's Bayport container terminal. In other words, the complex is right at the heart of a major employment center in a high-growth submarket.

"This fit right in the box for a lot of people," Jones says. "We knew we'd get a lot of activity, but this was a little bit better than we expected." Several bids were clustered in price. Dial got the nod because it's "a proven closer who's closed other deals with Archon," he says. "I think they were pleasantly surprised at the price we got them." Dial bought the 1980s-era complex in 2000.

Jones can't say if the bidding activity beat the ask, but he did say Dial kicked in "a winning bid that sets the bar for B class properties in the submarket." The new owner, which leases and manages in house, has eight properties in tertiary markets in East and West Texas. Jones says the recognized long-term holder is scouting for additional properties in South Texas, with location and cash flow as the prerequisites.

Jones teamed with ARA principal Matt Rotan to steer the sale. "This is what everyone's looking for in a class B value-add," Jones says. "It has a proven upside story and a great location."