Chicago Group Hawking 3,319-Unit Portfolio

HOUSTON-After years of amassing class A multifamily assets, a Chicago limited partnership is ready to sell the collection, introducing a 3,319-unit portfolio to the market. The 12 apartment complexes are located in Westchase, Medical Center, CBD and Energy Corridor.

As would be expected, the portfolio is coming to market without an ask, but similar assets have traded for $105,000 to $115,000 per unit. "This is a strong grouping of assets built during the mid-1990s," says Craig LaFollette, executive vice president in Houston for CB Richard Ellis, "and there haven't been a whole lot of those coming out in groups." He and CBRE colleagues Todd Stewart, Todd Marix and Tre Banks are representing the seller, ERP Operating LP.

LaFollette tells GlobeSt.com that the capital from the sale will be deployed in markets with higher barriers to entry. "Their comment is that Houston has been a good total return market for them and they'll probably be back in about five years," he adds.

Although the complexes are being marketed as a portfolio, LaFollette says the seller isn't averse to one-off deals. The portfolio's occupancy is 95%. Built between 1994 and 1999, the units average 926 sf while average rent is $949 per month. A call for offers is set for Feb. 14, with an anticipated closing by the end of April.

The portfolio consists of the 216-unit Farnham Park at 2777 Woodland Park; 384-unit Gramercy Park at 3225 Woodland Park; 362-unit Kirby Place at 7500 Kirby Dr.; 162-unit La Tour Fontaine at 2400 Fountainview Dr.; 171-unit Parc Royale at 2727 Elmside Dr.; 229-unit Park Place at 15200 Park Row; 263-unit Providence at Kirby at 7550 Kirby Dr.; 220-unit Ranchstone at 10901 Ranchstone Dr.; 188-unit Richmond Town Homes at 10777 Richmond Ave.; 288-unit Rincon at 777 Dunlavy St.; 318-unit Stone Oak at 14220 Park Row; 518-unit Town Center at 2727 Bens Branch Dr. in Kingwood.