HOUSTON-Continuing its buying spree in the region, AEW Capital Management LP has acquired the 243-unit Archstone Midtown from Archstone-Smith of Englewood, CO. Comparable assets in the Montrose submarket are selling for $100,000 to $200,000 per unit.
Archstone Midtown, which will be renamed, is assessed at $17.2 million so it's a foregone conclusion that the high-end product fell in the ballpark of the Montrose-Museum District's comps. Plus, the asset, positioned at 10 Oak Court, was 95% leased at sale time.
"This particular deal was about location," says David Mitchell, vice president with Apartment Realty Advisors in Houston, who worked the deal for Archstone-Smith. The property is inside the loop near the Museum District. "This was a quality product in an extremely nice neighborhood and we got some very nice offers," Mitchell says.
Mitchell says the asset was not widely marketed, because Archstone-Smith wanted a quick closing with a known buyer. "We shopped this around only to a few people," Mitchell tells GlobeSt.com. "AEW stepped up and made the best offer. This ended up closing within 30 days of being put under contract. There was a 25-day due-diligence and closing within five days of that."
The transaction is Boston-based AEW's second multifamily asset purchase this year in Houston and its fourth high-end deed for the local portfolio. Earlier this year, AEW bought the 346-unit Montierra Apartments, a $45-million assessed property in the Galleria submarket.
Built in 1998, Archstone Midtown is made up of one- and two-bedroom units, measuring between 631 sf to 1,882 sf. Its average monthly rent is $1,217.
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