UNIVERSAL CITY, CA-A one-year-old complex close to 100% occupancy has ended up in the portfolio of Inland American Real Estate Trust Inc., the property's former manager. According to an SEC filing, the 308-unit Villages at Kitty Hawk has been picked up in an all-cash deal for $21 million.
Michael Miller, associate partner in San Antonio for Phoenix-based Hendricks & Partners, American Opportunity for Houston had fielded multiple full-price offers for the complex at 11801 NE Loop 1604. "It was a short marketing period. But, going with the management company made the most sense because they were familiar with the property, they had a short due diligence and knew the property inside and out," Miller says. The Lynd Co. in San Antonio is leasing and managing the asset.
Miller tells GlobeSt.com that the complex's occupancy had hit 96% in less than six months mainly because of location. "There's a college going in kitty-corner to the property, a satellite, and that's spurred a lot of interest in the area," he says. Northeast Lakeview College, which broke ground in April, is part of the Alamo Community College District and will come on line in fall 2008.
Miller speculates that Inland liked the property because it was acquired for well-below replacement cost. "The price was very desirable," he adds. "They couldn't have built it for the amount the bought it for."
Situated on 12 acres, the 18-building Villages at Kitty Hawk has one-, two- and three-bedroom apartments measuring from 587 sf to 1,150 sf. Rents are $639 to $1,129 per month. Construction on a second phase for Villages at Kitty Hawk on an adjoining 12 acres will begin shortly.
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