WEBSTER, TX-A Dallas-based investment group has checked off another sale from a foreclosed trio of cross-collateralized multifamily properties--bought in April, broken up and returned to the market for piecemeal hand-offs. The second sale from the stack is the 776-unit Baybrook Village Apartments.
Southern Cross Construction Co. of Hattiesburg, MS bested 14 other bidders for the 54-building complex, positioned on 26.3 acres at 2702 W. Bay Area Blvd. "He was picked as a buyer for his ability move very quickly," Tre Banks, a senior associate in Houston for CB Richard Ellis, tells GlobeSt.com about a transaction that moved from contract to close in 58 days.
The confidentiality bars Banks from discussing the final price. But, the 91%-leased Baybrook Village was marketed for $31 million as a value-add with ready-to-go upside from the retirement of income-restricted rates. "It opens up a whole new world of renters," Banks says. The class B complex's rent is 79 cents per sf versus the submarket's 88 cents per sf average. On the sale side, class B units are fetching at least $32,000 apiece.
The buyer is a recognized long-term holder who's been amassing multifamily properties in the Clear Lake-Galveston corridor, targeting the population shift toward coastal areas. Baybrook Village, developed in 1980, strategically straddles both sides of a main artery, with a traffic signal to clear the way in and out of the property. "It's a huge value add," Banks stresses.
According to Banks, the "solid class B" needs little work in the way of a rehab. The mix of one-, two- and three-bedroom units range from 575 sf to 1,269 sf.
Banks says the seller, Hudson Advisors LLC, got the trio by buying a non-profit bond pool, with foreclosure and all-cash resale as part of the takeover plan.
CBRE's Nita Stewart made the first sale--a class B complex in South Dallas about six weeks ago. The close-out will come before Thanksgiving when Hudson turns over a class C deed in Southwest Houston, according to Banks. Baybrook Village's CBRE team included executive vice president G. Craig LaFollette and senior vice presidents J. Todd Stewart and M. Todd Marix.
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