204-Unit Complex Sells Inside the Loop

HOUSTON-A Colorado buyer has added to its multifamily holdings in Greater Houston with an all-cash acquisition of a 204-unit complex located inside the loop. The deal is the investment group's third acquisition in a year.

The Durango, CO-based GF Properties Group LLC's latest purchase is the Inverness at 3133 Buffalo Speedway. The investment group also owns the 191-unit Biarritz Apartments in Houston and 240-unit Vinings in Stafford.

While the sales price was not disclosed, sources in the area refer to comparable neighboring complexes like the 309-unit Monreal, which topped out at $113,000 per unit during a recent sale. It's believed that the 5.45-acre Inverness, assessed at $16.4 million, has sold for more.

"This is in an absolute A-plus-plus location. The building was in impeccable condition and it's well-maintained," says dealmaker Craig LaFollette, senior vice president with CB Richard Ellis in Houston. "There's also an upside by redoing the interiors," he says, noting the seller had started to renovate some units.

LaFollette says the seller and developer, Buffalo Speedway Partners, decided to put the early 1990s-constructed complex on the market to take advantage of demand and capital markets. "The selling entity was a partnership between two Houston developers. They'd done the deal in 1990 and owned it ever since," he adds.

LaFollette tells GlobeSt.com that the 94%-occupied Inverness was listed without an ask to take advantage of potential interest from converters. "With Houston's market for condos, it's actually worth more to operators than it was to the converters," he says.

The new owner will keep the asset as a long-term hold, with upside potential in a renovation and possible rent hike. The one- and two-bedroom units bring $950 to $1,200 per month. CBRE senior vice presidents Todd Stewart and Todd Marix along with associate Tre Banks helped to broker the sale.