HOUSTON-GF Properties Group LLC of Durango, CO, a growth fund operated by the Southern Ute Indian Tribe, has pushed its area holdings to four with the off-market acquisition of the 252-unit Stonewood Apartments.
According to the deal's broker, Stonewood Apartments at 701 TC Jester Blvd. has sold for less than the comparable market price of $100,000 per unit. Harris County has the 2001-constructed asset assessed at $15.3 million.
Jim Hearn, partner for Hendricks & Partners in Houston, tells GlobeSt.com that the buyer typically acquires assets through all-cash deals, but in Stonewood's case, the existing paper, held by GMAC Mortgage Corp. of Horsham, PA, was assumed because of a 5.5% interest rate. He says seller Stonewood Complex LP of Beverly Hills, CA had 10 more years left on the term of the $13-million loan, which was floated in July 2004.
The class A Stonewood Apartments was in "near-perfect condition," Hearn says, adding the plan is "to spend the money, do some capital upgrades and potentially raise the rent." The one- and two-bedroom units were 94% leased at sale time. The units, measuring 572 sf to 1,040 sf, rent for $589 to $1,400 per month.
"They're selective buyers looking for infill deals that they deem to have a physical or operational upside to them," Hearn says, adding the below-market price added to the incentive to take the deal. The buyer's team included Ed Cummins and Ryan Terrell, both in Hendricks' Houston office, and Tom Warren in Dallas. David Joachim of International Realty Concepts in Houston represented the seller.
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