"This was just good timing on the seller's part because the mixed-use development next door is starting to blossom," says David Mitchell, principal in Houston for Apartment Realty Advisors. He says the growth of the adjacent 50-acre Kings Harbor Waterfront Village added value to the 95%-leased asset at 4630 Magnolia Cove Dr. for the sellers, Midway Development Co. and Chancellor Properties.

Kings Harbor Waterfront Village is a Midway Cos. development consisting of residential, retail and office product. The development has attracted restaurants including Zammittis, Wine Loft, Chimichirri's and Como se Dice.

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

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

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

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