Sueba Sells 324 Units to Southeast Buyer

HOUSTON-A Birmingham, AL-based investment group has bought the brand-new 324-unit Vintage Park Apartments from local developer Sueba USA Corp. The buyer obtained a $41-million, interest-only interim loan to help fund the acquisition of the complex in the far northwest submarket.

According to Capmark Finance Inc. vice president Stewart Campbell, Vintage Park Apartments marks Investment Realty Holdings LLC's third multifamily acquisition in the area. He explains that the 50%-occupied complex at 15727 Cutten Rd. was just completed and is going through its initial lease-up.

"Their goal is to lease it up, maximize the rents and sell it," Campbell says. He and Capmark Finance vice president Scott Crimmins originated the acquisition loan.

Campbell tells GlobeSt.com that Capmark's longstanding relationship with Investment Realty Holdings meant there was little hesitation on the company's part to structure a three-year, floating-rate financing at about 150 basis points above Libor. According to a press release, the financing had an 89% loan-to-value ratio at closing and is projected to be 75% at stabilization.

Additionally, Investment Realty's previous experience with class A product was a comfort to the lender. "We liked the business plan. We like the market and think it was a nice play," Campbell adds.

Vintage Park Apartments has one- and two-bedroom units ranging from 814 sf to 1,220 sf. The rents are $995 to $1,495 per month.

GlobeSt.com previously reported Investment Realty was on the hunt for more multifamily deals in the area, but Campbell says the investor is looking at deals a little more cautiously these days. In September 2006, the investment group bought the 428-unit Remington Park Apartments at 5510 S. Rice Ave. in the near southwest submarket and subsequently the 372-unit San Paloma Apartments at 1255 N. Eldridge Parkway on the far west side.