"This was just good timing on the seller's part because themixed-use development next door is starting to blossom," says DavidMitchell, principal in Houston for Apartment Realty Advisors. Hesays the growth of the adjacent 50-acre Kings Harbor WaterfrontVillage added value to the 95%-leased asset at 4630 Magnolia CoveDr. for the sellers, Midway Development Co. and ChancellorProperties.

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Kings Harbor Waterfront Village is a Midway Cos. developmentconsisting of residential, retail and office product. Thedevelopment has attracted restaurants including Zammittis, WineLoft, Chimichirri's and Como se Dice.

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"Once that mixed-use development next door is finalized, thevalue of the property will be that much higher," explains Mitchell,who teamed with ARA principal Matthew Rotan.

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Midway Development and Chancellor Properties acquired the assetin late 2005 from Chicago-based AMLI Residential Properties Trust.The joint venture paid close to $25 million for the asset, whichwas built in two phases between 2001 and 2003. These days, similarclass A apartment complexes are trading for $90,000 to $95,000 perunit.

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Mitchell tells GlobeSt.com that Francis Property came away withthe asset because of its nationwide reputation and willingness toassume debt. Francis Property was represented by David Joachim,president of International Realty Concepts Inc. in Houston.

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The new owner is managing the 14-building complex, a 15-acredevelopment of one- and two-bedroom apartments ranging from 696 sfto 1,267 sf. Monthly rents are $718 to $1,248.

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