BofA Makes Off-Market Deal for 216 Units

SAN ANTONIO-An unlisted asset in a multimillion-dollar Texas portfolio breakup has been acquired by Bank of America Corp.'s Community Development fund in a direct deal. The 216-unit Audubon Apartments were 90% leased at sale time.

The brokers for the deal won't discuss the price of the 1984-built asset at 10631 Nacogdoches Rd., but similar class B properties in the submarket have sold for $30,000 to $40,000 per unit. The seller is Metra United, made up of Dallas-based Alon Group and a Boca Raton, FL-based operating partner, which bought the $165-million, 4,102-apartment portfolio of class A and B apartments in the early 2000s from Richmond, VA-based United Dominion Realty Trust.

Don Ostroff, senior director with Cushman & Wakefield of Texas Inc., says his team brought the apartment to the attention of the Charlotte, NC-based bank, which liked the asset's potential upside. "As has been the case with Metra assets that are in good condition and in good locations, Bank of America will do a rehab of the property," Ostoff tells GlobeSt.com. "This one is in pretty good condition." He worked with C&W brokers Lamont Rattler and Jason Boyce to close the deal.

Ostoff adds that rents will be upped, but not out of range so they adhere to the BofA mission to provide affordable workforce housing in their markets. "With upgrades, in general, we find that the market can and will choose to pay modestly higher rates for improved, better quality, better condition class B units," Ostroff explains. "Audubon will still provide good value for the renter, who will have an upgraded, improved apartment."

In the next two months, Ostroff says five more class B complexes from Metra United's portfolio will come to market. Meanwhile, a class A complex is slated to be sold within 30 days.

The 20-building Audubon Apartments is situated on a 10.4-acre tract. It is made up of one- and two-bedroom apartments ranging from 557 sf to 939 sf. Its rents run from $605 to $765 per month.