HOUSTON-Following up on an area acquisition made less than a year ago, a Boston buyer purchased the 656-unit Trails at Rock Creek I & II. The class A complex in the far northwest submarket was marketed selectively to eight prospects, with Realty Associates Advisors beating others through a short contingency, quick close and all-cash deal.
Located on 50 acres at 12502 Seattle Slew Dr., Trails at Rock Creek was sold by the local developer and manager, Beeler Properties Inc. Though the sales price was kept quiet, similar assets in the area have traded for $70,000 to $80,000 per door. The Harris County Appraisal District assesses the complex's value at $15.1 million.
Ed Cummins with Hendricks & Partners' Houston office tells GlobeSt.com that the buyer will make some upgrades to the interior units and repaint the entire property in an attempt to increase the rents. "Once all of that's completed, this should compete very favorably with the latest generation apartments in the area," Cummins comments.
Another aspect in Realty Associates Advisors' favor was the company's success with the 304-unit Legacy Complex at 10801 Legacy Park Dr., located less than a mile and a half from its recent acquisition. The buyer bought the class B-plus Legacy Complex in May 2006 and "they've done very well with the property," Cummins says.
The 90%-occupied Trails at Rock Creek was built in two phases during 1996 and 1997. The complex has a mix of studios as well as one- and two-unit apartments, with rents ranging between $600 and $1,100. Jim Hearn, also with Hendricks & Partners' Houston office and Tom Warren out of the company's Dallas office worked with Cummins on the transaction.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.