First-Time Buyer Pays $1.5M for 90 Units

Colonial Del Mar LLC of Houston bought the 40-unit Villa Del Mar at 8345 Park Place Blvd. and the 50-unit Colonial Park at 8351 Park Place Blvd., which share a two-acre tract. Tagged at $1.5 million, the complexes were purchased from DMC Enterprises of Houston.

Robert Su with the Houston office of Marcus & Millichap tells GlobeSt.com that the new owner plans to put about $240,000 into a rehab to realize upside potential from a rent hike. Units average 794 sf while rent brings in an average of 55 cents per sf or $437 per month. Su says the new owners expect to raise rent to about 60 cents per sf after the rehab, which has just gotten under way.

The properties, with a combined 78% occupancy, were on the market for 46 days and generated seven offers. According to the Harris County Appraisal District, the 43-year-old Villa Del Mar was assessed at $683,600 in 2002. Colonial Park, built in 1965, was assessed at $481,200, county records show.

Su says the multifamily market is attracting "an influx of first-time and new investors because of low interest rates, a lack of attractive alternative investments and the fact that these properties generate income while appreciating." Su and John Nolan, also in Marcus & Millichap's Houston office, represented the seller, who disposed of the properties due to a move out of US. The buyer had an adviser, but not a broker.