ALAMAGORDO, NM-A Texas developer has sold the 280-unit Las Ventanas to a White Plains investor. The seven-year-old, class A complex, located near Holloman Air Force Base, sold for just south of the $22-million ask.
The 93%-occupied complex is situated on 18.65 acres at 2200 E. First St. During the 30-day marketing period, Bohannon Development Corp. fielded eight offers. The El Paso-based seller decided that Woodlark Capital LLC, which specializes in multifamily properties near military installations and student housing, would be the best bet.
"A lot of the groups were looking more at the yield. Military housing is a little higher in that area than conventional housing," says Jeffrey Patterson, vice president of Apartment Realty Advisors' secondary markets team in Houston. Patterson, who represented the seller, adds the risk to military housing is an armed forces' tenant called to active duty can break the lease without any financial recourse for the owner. But, he says the buyer, with its current asset base and product knowledge, is familiar with the risk.
Patterson says the reward with the investment is the location. "One of the draws for the buyer was that this is between Fort Bliss, White Sands Missile Range and Holloman Air Force Base," he tells GlobeSt.com, adding the triumvirate and the military-owed land surrounding it represents the area's stability. "Investors buying in towns with a large percentage of military assets look near bases that they are comfortable won't close anytime soon," he says.
The 23-building complex has one-, two- and three-unit apartments plus three-unit townhouses. The apartments range from 557 sf to 1,375 sf and townhouses measure 1,689 sf. The monthly rents are $500 to $1,160.
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