The deal closed with an 8.56% pro forma capitalization rate. Seller Archstone-Smith was represented by a Marcus & Millichap senior investment team consisting of Norman Eastwood in Dallas and Stan Jones in Palo Alto, CA. Eastwood and Jones declined comment on the transaction citing a confidentiality agreement.

In a prepared statement, Eastwood did say "the barriers to entry into the area's multifamily market are extremely high, a factor that made this an appealing investment opportunity." He added there is significant upside potential due to the limited availability of land and initiatives that restrict future development.

Archstone-Smith acquired the 18-year-old 7100 Almeda in 2001 from Property Trust America, according to the Harris County Appraisal District. The property's 2002 assessment is close to $15 million. The REIT's representatives could not be reached by press time for comment, but it is down to nine complexes in Houston. Nationwide, Archstone-Smith owns 79,489 units and has another 2,117 under construction. The REIT's total market capitalization is $9.6 billion.

The 7100 Almeda Rd. complex, renovated in 1999, has one- and two-bedroom designs that range from 575 sf to 930 sf, with a rental scale of $659 to $905 per month. The complex was 95% leased at sale time.

According to a third-quarter multifamily report put out by the Houston office of CB Richard Ellis Inc., the Medical Center/Bellaire submarket is 94% occupied, one of the highest occupancy rates in the city. The submarket contains 86 properties totaling 16,377 units. The monthly rent averages 90 cents per sf, which is on par with 7100 Almeda.

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