Value-Add Play Drives 324-Unit Acquisition

The local buyer has bought the 8901 Bissonnet St. complex out of foreclosure from Fannie Mae, which has Atlanta-based Trimont Real Estate Advisors as its representative in the deal, according to M. Todd Marix, senior vice president for CB Richard Ellis in Houston office. He says Stoneriver attracted several offers, but presented a financing challenge. Marix says Poseidon financed the transaction with a bridge loan that will be rolled to permanent financing once the complex is stabilized.

"This complex was a victim of previous management that was in a downward spiral," Marix says. He teamed with CBRE's executive vice presidents G. Craig LaFollette and J. Todd Stewart, senior associate Tre T. Banks and associate Christopher D. Curry to sell the asset.

Marix says Trimont came onto the scene in spring 2007. "Stoneriver was 75% occupied when they came in," Marix tells GlobeSt.com. "They got rid of a real bad element there--unqualified folks who weren't paying rent. There was crime, and gang activity and drug trafficking, but the new management came in and cleaned it up."

As a result of Trimont's campaign, occupancy currently hovers 55%, but Marix says Poseidon, which beat out 10 others, is more than qualified to finish the repositioning. "Poseidon bought Williamstown Apartments up the street. That has a mid-90's occupancy. It showed us there were better days ahead for Stoneriver," Marix says, pointing out that the complex has good bones.

Marix Poseidon will operate Stoneriver and the 272-unit Williamstown Apartments at 9200 Bissonnet as sister properties. "The unit mixes are complementary," he adds. "If a tenant comes to Williamstown with a need for a three-bedroom apartment, which Stoneriver has, they can be sent down there."

Built in 1974 on 11.9 acres, Stoneriver Apartments has one-, two- and three-bedroom units from 704 sf to 1,436 sf. The monthly rents are $472 to $690.