SUGAR LAND, TX-A San Diego investment group has set up a market entry with the acquisition of the 240-unit Alta Creek Apartments from Atlanta-based Wood Partners LLC. Sources say comparable class A assets have been selling for $85,000 to $95,000 per unit.
"The seller's strategy is to build and sell," says David Wylie with Apartment Realty Advisors in Houston, "and the market there is hot right now to sell." He credits Fort Bend County's fast-paced growth with making the timing right for the sale of the 15270 Voss Rd. property. According to census information, last year's population estimate was 448,338 and it's expected to push close to one million people by 2020.
Wylie, who represented Wood Partners, says buyer Kelly Capital, which was self-represented, called him the first day that the complex was on the market. Seventy-one days later, the deal closed. "He called, said he was in a 1031 exchange and liked the way it looked," Wylie tells GlobeSt.com, adding the all-cash deal satisfied the parameters of the 1031 exchange.
"Kelly plans a long-term hold with this," Wylie says. "They're an entrepreneurial company with all kinds of real estate." The complex also fits the buyer's mission to acquire assets in urban submarkets.
The one-year-old complex, situated on 11 acres, was 90% occupied at closing. In keeping with Texas tradition, the sale price is off limits, but Fort Bend County has a $9.7-million assessment attached to the property. Alta Creek Apartments has a mix of one-, two- and three-bedroom units that range from 635 sf to 1,411 sf. Monthly rents go from $740 to $1,515.
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