HOUSTON-In its second run on the market, the 304-unit Legacy Park has traded to a Boston-based limited liability company, which trumped 16 other interested parties with an offer just south of the $21-million ask. Realty Associates Advisors managed to score the win by putting $1 million at risk within 10 days of escrow.
"They came up with the hard money and offered to go high on this deal," Ryan Terrell with Hendricks & Partners in Houston, tells GlobeSt.com. He and colleagues Jim Hearn and Ed Cummins brokered the sale of the class B-plus complex at 10801 Legacy Park Dr.Terrell says Legacy Park, situated on 13.5 acres, had been to market in 2002-03 and attracted decent interest. But when the economy took a sharp downturn, developer Osher Interests Ltd. in Houston pulled it. "There'd been some interest in this a couple of years ago, but wasn't as strong as this time," Terrell says. "This time around, people saw the upside of this type of product. They were more bullish on it now."
Realty Associates Advisors is planning a complete renovation of unit interiors as part of a repositioning strategy to capitalize on the region's stronger multifamily market. The 88%-occupied complex has a mix of one- and two-bedroom units, averaging 836 sf. Rents average $820 per month. Terrell speculates the new owners will increase rents after the renovation and work toward stabilizing the asset.
Terrell says the buyer, which used an in-house broker for the negotiations, owns another apartment complex about three miles away. Steeplecrest Apartments at 11220 West Rd. was acquired from the same seller in 2002. "The buyer is looking for a unique opportunity to get good cash flow and this one just happened to fit their model," Terrell adds.
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