HOUSTON-Centaurus Investment LLC has increased its presence in Houston with the acquisition of the 394-unit Cove at Windmill Lakes. The class B complex from Acacia Equities of Anaheim Hills, CA puts the Dallas-based investment company over the 5,000-unit mark in Texas--with more to come.
John Griggs III, Centaurus' managing partner, tells GlobeSt.com that the plan is to invest $1 million in the 23-year-old asset at 9988 Windmill Lakes Blvd. and raise rents $75 to $100 when the renovation is done. He says comparable assets in the area are selling for $35,000 to $40,000 per unit, but Cove at Windmill Lakes was acquired at well below replacement cost.
"The good thing about this complex is that it's a 1984 build, but it's ahead of its time," Griggs says. "The average unit size is more than 900 sf. The top floor units have vaulted ceilings." The improvements will include re-skinning as well as tile and floor upgrades, new countertops and appliances.
Griggs says the acquisition represents an important milestone for the company, allowing it to surpass 5,000 units in the state. "We have another 1,000 units under contract in Dallas and Houston and should be closing on those within the next six to eight weeks," he adds.
Cove at Windmill Lakes is situated on nearly 15 acres. Its one- and two-bedroom units range from 651 sf to 1,067 sf. Rents go from $535 to $705 per month. Forrest Bass, an agent with Houston Income Properties Inc. represented the seller. Centaurus, which manages its properties, was self-represented.
Earlier this summer, Griggs and his partner Cross K. Moceri acquired the 368-unit Meadows at Park Boulevard at 1201 E. Park Blvd. in Plano. Griggs says it too will be paced through a $1-million overhaul in the coming months.
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