108 Condo Owners Eyeing Vintage Complex's Sale

Saul Keeton, senior vice president in Houston for Colliers International, says the costs of deferred maintenance for the owners of the complex at 5292 Memorial Dr. had become burdensome, which is one reason they've agreed to bring the asset to market. "We've just begun the marketing process and will market this until June 12," Keeton says. "Shortly after that, we'll hopefully have a buyer selected."

Although the offering is going out without a minimum ask, land sales in the Memorial Heights submarket are bringing $85 per sf to $100 per sf. The complex totals 166,538 sf in a mix of one- and two-bedroom units. Harris Central Appraisal District assessments range from $103 per sf to $106 per sf per unit.

Keeton says there's already been substantial interest from multifamily developers. "I've also had calls from developers known more for office and retail calling us," he says. He adds that it's highly unusual for individual condo owners to band together in this type of deal.

Joel Goldsteen, professor at the University of Texas at Arlington's School of Urban and Public Affairs agrees, noting the agreement is remarkable, just based on the fact that so many principals are involved. "It's unusual for any kind of condo association of more than 15 or 20 people, at the most, of ever getting together on anything, including fixing sidewalks," he tells GlobeSt.com. He says the agreement could have happened in several ways, including the fact that there might have been a single person, or a couple people, encouraging the others to agree.

Keeton says getting everyone on the same page required many meetings in which Colliers staff helped to persuade some of the more reluctant condo owners. "Ultimately, the community met the hurdles needed to give power of attorney to the homeowners' association board to effect the property sale," Keeton says.

Teresa Lowery, principal with Colliers' Houston office, says the idea of condo owners getting together to sell entire complexes instead of putting money into upgrades could become a trend in the area. "We've already been approached by another group in an urban location with help on their project that's in excess of 200 units," she says. "These individuals have gotten wind of what we're doing and have asked us to come in and present to their homeowners' association."