HOUSTON-In its first such activity in the area, Post Properties Inc. is converting 143 of 672 units at Post Midtown Square into residential condominiums. The conversion tickets units in the developer's 15-story tower.
The Atlanta-based Post plans to spend $40,000 per unit, on average, to convert the rentals into for-sale product at 2000 Bagby St. in Midtown. Al Coker & Associates of Houston will market and sell the units.
Post has started an "insider" program to pre-sell units to residents. Units will be available to the public beginning in March. The condos have been priced in the high $100,000s to about $1 million. It's expected to take 12 to 18 months to sell the stock.
According to David Ward, executive vice president and regional investment director for Post's Southwest markets, there are two ways to price the condos--with upgrades and as-is. "We offer a discount to buyers who don't want the changes," he says, adding a few buyers are most likely to take units as-is since the development is less than five years old.
Ward tells GlobeSt.com that the conversion is Post's exit strategy. "We develop and own these properties for several years, then sell them," he explains. "One option is to sell this, most likely, to a converter. But in some situations, Post makes the decision to convert." There are no plans to convert additional Post properties in Houston into condominiums at this time, he adds.
The tower portion of Post Midtown Square is 95% occupied. It consists of all two-story units, of which one-third are two-bedroom designs and the balance are one-bedroom. Apartments range from 580 sf to more than 4,800 sf. The monthly rent averages just under $2,000 per month.
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