Concierge CEO Ted Kerr says the plan is to invest about $3,700 per unit into upgrades to take the class C complex at 265 El Dorado Blvd. to class B-plus status. He says the renovation of interiors, exteriors and landscaping has begun and should be completed in about 90 days.
The 95%-occupied complex near Clear Lake was in the path of Hurricane Ike, but Kerr says it sustained no damage. Still, there were some anxious moments because the lender, Freddie Mac, typically likes third-party inspectors to examine properties after a hurricane.
Kerr tells GlobeSt.com that Freddie Mac was willing to waive the third-party inspection because Concierge, based in Tiburon, CA and Houston, is a preferred borrower plus it has a long-standing relationship with mortgage broker Capmark Financial Group. "Freddie Mac allowed Capmark to do the post-hurricane inspection and that allowed us to close on time," Kerr says.
Brant Smith, vice president with Capmark Financial's Houston office, arranged $9.45 million in financing for the acquisition. The loan has a fixed-rate interest of 6.11%.
El Dorado Ranch is situated on a little more than 10 acres. The one- and two-bedroom apartments range from 536 sf to 960 sf. Rents are $495 to $805 per month.
Principal David Wylie and vice president Russell Jones with Apartment Realty Advisors' Houston office represented TriVest. The buyer used in-house brokers to close the deal.
Kerr says Concierge has acquired several thousand units in Texas in the past year. By the end of the year, the investment group expects to close on more properties in Dallas and Fort Worth. In the past three months, Concierge acquired the 208-unit Sunrise Canyon Apartments at 501 Sunrise Canyon Dr. and 333-unit Sable Ridge Apartments at 330 Kitty Hawk Rd., both in Universal City near San Antonio.
Kerr declined to discuss the 2009 goals, but did acknowledge Concierge has a large pipeline. "We believe this is a tremendous buying opportunity in the current environment," he explains. "With the recent turmoil in the markets, it's become more of a buyer than seller's market so we want to take advantage of that."
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