HOUSTON-Summit Asset Management LLC of Montgomery, AL has acquired the 419-unit Village Park Apartments for close to the $15-million ask.
Douglas Lockwood, a vice president in Houston for Grubb & Ellis Co., tells GlobeSt.com that the deal for 8701 Hammerly Blvd. took about 1.5 years to close. "The buyer was a tax credit buyer and they were financing the property with bonds," explains Lockwood, who represented the seller. "Anything dealing with the government takes a little longer. We took that into account when we went into this, but we got it done."
The seller, Aspen Square Management of West Springfield, MA, operating under the name Brittney Village Park LP, sold the recently renovated complex to take advantage of a strong market, Lockwood continues. "They'd owned it for 10 years and their hold is typically long term," Lockwood says. "They were simply ready to go with this."
Another factor in the sale was low cap rates. "The owner saw cap rates at a low level, lower than they have been in a long time," Lockwood adds. "Money was relatively inexpensive and that helped add value to the asset." He says the seller has no plans to sell its other Houston property, Lenox Apartments, which is on the city's west side.
The 95%-occupied Village Park Apartments, constructed in 1976 on a 10-acre tract, has a mix of one-, two- and three-bedroom apartments, measuring from 672 sf to 1,150 sf. Rents range from $587 to $859 per month.
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