HOUSTON-Following a three-year-hold, a Los Angeles owner sold the 364-unit Northwest Pines to a New York City buyer. The sales price was within 90% of the $11.4-million ask, and had a 8.5% cap rate.
"The seller had a tough run following Katrina, but was able to turn the asset's performance around during the hold and prior to disposition," says Edward Nwokedi, director with Cushman & Wakefield of Texas Inc. Nwokedi, who represented JRK Asset Management Inc., adds that the class B, 27-year-old complex at 5801 N. Houston Rosslyn Rd. was 94% occupied at closing, an increase from the 84% occupancy recorded when it first went under contract.
Buyer MNR Inc., which is new to the Houston market, has few repairs to make as the property is in good condition and JRK renovated extensively in 2002, Nwokedi says. He tells GlobeSt.com that MNR retained Asset Plus Corp. of Houston to take over management from JRK's management arm AMD Property Management.
"The buyers exchanged out of a New Jersey apartment property they'd sold several months ago," Nwokedi adds. "They'd like to purchase similar properties in Houston." He says that JRK continues its search for value-add opportunities as well, which was one reason for the Northwest Pines sale.
Situated on 11.61 acres in the Brookhollow submarket, Northwest Pines has one- and two-bedroom units with rents ranging from $435 to $625 per month. Cushman & Wakefield associate brokers Oliver Pereira and Daryl Kadlecek worked with Nwokedi on behalf of the seller. MNR was self-represented.
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