The 228-unit Huntwick Apartments at 5100 FM 1960 Rd. W. in Houston's far northwest submarket and 228-unit Timbers of Pine Hollow at 2020 Plantation Dr. in Conroe were once in the portfolio of MBS Cos. of Metairie, LA, which filed for bankruptcy in late 2007. The bulk of MBS' Louisiana and Texas portfolio went into receivership.
Spencer Garfield, managing director of the New York City-based Hudson Realty Capital, says the debt was bought at a favorable rate, with Triumph Land & Capital Management LLC being brought in to oversee the renovation and get both assets stabilized. Timbers at Pine Hollows stands at about 55% occupancy while Huntwick is about 40% leased.
Triumph Land & Capital's president Aaron Graft tells GlobeSt.com that about $4 million is earmarked for Huntwick's upgrades, which will include interiors, new clubhouse and addition of a resort-style swimming pool. Also in the cards is a name change to Providence at Champion. "That'll be an 18- to 24-month renovation process, at which point, we'll either take the property back to the market or put in long-term debt," Graft says. Myan Management Group LLC of Southlake, TX is handling leasing and management.
Timbers of Pine Hollow will have a somewhat different future. Graft says the complex is under contract to sell although it's targeted for a $2-million renovation. He adds that Triumph Land & Capital isn't typically a flipper, but "we don't hesitate to harvest profits when the opportunity arises" if a well-seasoned buyer is interested in a property.
Graft says Timbers' potential buyer already owns and operates in the far north submarket and had been watching the property for awhile. "They weren't comfortable acquiring the distressed debt, but are certainly comfortable with a more traditional real estate acquisition," he says. "This is a smart operator that should do well with the asset."
Both complexes were built in the 1980s and have studios, one- and two-bedroom units. The monthly rents are between $339 and $605.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
