HOUSTON-A former executive with Apartment Investment and Management Co. makes his first mark in the area, acquiring the 476-unit Trails at Briar Forest. The buyer has snagged the class B complex from Equity Residential of Chicago.
Although the purchase price is being kept quiet, industry experts estimate Patrick Slavin of Denver-based Slavin Multifamily Advisors LLC has most likely paid more than $25 million for the 93%-leased complex at 12951 Briar Forest Dr. The Energy Corridor asset was listed at $33.5 million.
The buyer plans to invest an additional $3 million to renovate the property, developed in two phases between 1988 and 1991. "This was a great acquisition and a great value-add deal," says Jim Pierson, principal with the Phoenix office of Johnson Capital. He and colleague Keaton Merrell arranged a $21-million Fannie Mae DUS loan through CW Capital in Washington DC.
A portion of the loan will be used for the renovation. "They'll fund the remaining rehab mostly on their own or come back to Fannie Mae for supplemental funding," Pierson tells GlobeSt.com.
The Trails at Briar Forest has a mix of one- and two-bedroom units, ranging from 551 sf to 1,143 sf. Monthly rents go from $529 to $869.
Craig LaFollette, Todd Stewart, Todd Marix and Tre Banks with CB Richard Ellis in Houston brokered the transaction. Greystar Management's Houston team will oversee the asset for the new owner.
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