HOUSTON-In a half-day turnaround, a local limited partnership received an offer, and ultimately sold, the 15-unit D'Orleans Apartments for close to its ask of nearly $1.33 million. The seller, operating under the name of D Orleans Ltd. in Houston, sold the property, located at 1717 Commonwealth St., to a Newport Beach, CA-based private investor.
"An offer came in the first day this was on the market," says Sheri Carey, investment specialist, national multihousing group with Marcus & Millichap Real Estate Investment Brokerage Co.'s Houston office. "It was on the system at 7 a.m., and by 9 a.m., we had the offer. I hadn't even called the local guys about it yet."
Carey, with colleague Robert Su, represented the seller in the transaction. Carey tells GlobeSt.com that the buyers, represented by Greg Bassirpou from Marcus & Millichap's Newport Beach, CA office, had discussed converting the property to condominiums but will operate it as an apartment facility for at least another year.
"My client had owned it for six years and made a lot of improvements, so the buyers will likely leave it as-is for now," she adds. Built in 1964, D'Orleans offers a mix of 11 two-bedroom units, measuring 1,400 sf, and four one-bedroom units measuring 700 sf. Monthly rental rates average $1,100 to $1,200 for the two-bedroom apartments, and $700 for the one-bedroom units. The property was 100% occupied at the time of sale.
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