Susan L. Hill, senior vice president and director with the Houston office of Minneapolis-based NorthMarq Capital Inc., tells GlobeSt.com that the renovation will result in a rent hike to capture the upside potential. Rent is now 71 cents per sf, but the plan is to raise it to 78 cents per sf and closer to the market rate. Rent now averages $515 per month, based on a average unit size of 726 sf. The six-cent change will push the average to $567 per month.
Hill arranged an $11-million acquisition and renovation loan for Trimark with GE Real Estate of Stamford, CT, in a three-year package with a floating interest rate. The complex, situated on 12.4 acres, was 93% occupied at sale time.
Seller Richard Schofield of Tampa, FL, acquired the asset in the mid-1980s, says Mark Hendricks, associate partner in the Houston office of Phoenix-based Hendricks & Partners. He and Ed Cummins III, senior investment broker, handled both sides of the negotiations. Hendricks says Schofield was selling his lone Houston asset in a plan to reinvest in a commercial property closer to his home.
Hendricks says the complex was under contract to a non-profit buyer, but the deal fell out in January. It was put back on the market with an asking price of $12 million, an offering that brought in seven bids to bring a closing in 65 days at a price that was close to the ask, he confides.
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