KATY, TX-Following a difficult escrow period, a limited liability company from Irvine, CA has entered the market with the acquisition of the class A, 291-unit Bent Tree Apartments in the western suburbs.
SVN Equities LLC purchased the four-year-old complex at 21500 Park Row for just south of the $17.5-million ask, William Forrest, senior investment adviser for Sperry Van Ness in Houston, tells GlobeSt.com. He and Sperry Van Ness broker Leah Forrest represented the buyer. David Wylie with Apartment Realty Advisors' Houston office represented the local developer, Bent Tree Ventures Ltd.
"SVN bought this property because the principals wanted to get into this market," Forrest says. "They thought it was a good deal and a good way to get their feet wet here."
Though SVN liked the property and its potential, Forrest acknowledges the transaction was difficult to close due to unexpected red tape and ever-changing occupancy figures. "The occupancy when we put it under contract was at about 87%. It jumped up because of [Hurricane] Katrina, then it started falling again," Forrest says. "It was one of those moving targets and the lender had problems with it." He adds occupancy was 92% at closing.
Situated on 13 acres near Interstate 10, Bent Tree Apartments offers one- two- and three-bedroom units ranging from 650 sf to 1,300 sf. Monthly rents run from $665 to $1,215.
Forrest says SVN continues to seek other class A multifamily complex, preferably inside the Beltway 8 loop, a major highway surrounding the metro area. "This particular property was outside the loop, but ended up being a good area for them," he adds.
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