HOUSTON-Venterra Realty Management will invest another $1 million into the deal acquiring a 536-unit complex from Camden Property Trust. Sources say the asset, renamed Wilshire Place, most likely brought in the neighborhood of $16 million based on area comps.
Camden had a plethora of bids, including two fallen-out contracts before getting the deal signed, sealed and delivered. The class B complex at 6000 Hollister is assessed at $14.3 million. "We were patient on this one and we were able to get the property at a price that was fairly attractive," Greg Finch, president of the Webster-based Venterra, tells GlobeSt.com. He says the next move is to redo the 26-year-old buildings' exteriors and refurbish the leasing office.
Finch says the location was the dealmaker. "We liked that retail in the area is doing very well," he says. "That pocket in there is well-supported by retail up and down 290."
According to Camden's broker, the complex was sold as part of a strategy to decrease the age of its portfolio. "This is typical of the REIT," explains Todd Stewart, senior vice president with CB Richard Ellis's Houston office. "This is an older asset in the original roll-up of Camden. As these assets get older, they prune their portfolio and will use the money for new acquisitions and development deals."
Stewart acknowledges bringing the complex to the closing table had been a challenge, though its initial 30-day marketing period had attracted 15 bids. With two other buyers falling out of escrow, Venterra's reputation and ability to close won the complex. "They have a great reputation in the market as a closer," Stewart says. "We've sold them probably nine or 10 deals. We know they get them closed."
Stewart says Venterra ended up with a nice complex in a good location. "That area has done unbelievably well over the years and has absorbed a tremendous amount of units," he says. "A lot of jobs are located right there. They got a great location for a great asset."
The 92%-occupied complex has a mix of one- and two-bedroom apartments, ranging from 518 sf to 1,193 sf. The monthly rents go from $544 to $828.
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