X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DALLAS-Atlanta-based Gables Residential has sold two Texas multifamily rental communities, one in Dallas and one near Houston, to a non-profit 501(c) 3 organization with tax-exempt bond financing. The two apartment communities were sold for $54.3 million.

“We successfully sought out a buyer which allowed us to truly maximize our value for the assets. These prices are at least 15% above conventional valuation level,” says Chris Wheeler, CEO of Gables.

The properties include the Arborstone, a 536-unit apartment complex in Dallas, and Baybrook Village, a 776-unit apartment community in Webster, TX, a suburb of Houston. Jim Hearn, a Houston partner of Phoenix-based Hendricks & Partners, represented Gables Realty LP while Ed Cummins III, senior investment adviser for Hendricks & Partners, acted on the buyer’s behalf.

The Arborstone is located at 6500 South Cockrell Hill Rd. in southwest Dallas. Apartments range from one-bedroom, 590-sf units that lease at $460 per month to two-bedroom, 920-sf apartments that lease for $780 per month. Baybrook Village is located at 2702 West Bay Area Blvd. near the Clear Lake/NASA area. Apartments there range from one-bedroom, 575-sf units to three-bedroom, 1269-sf apartments that lease for $935 per month.

“This is an extraordinarily attractive cost of capital for assets averaging over 18 years in age,” Wheeler says. “The sale upgrades our portfolio materially.”

Gables expects to report a gain on sale during the fourth quarter of approximately $26.5 million, or $0.87 per share. The sale included a five-year management contract for Gables.

Gables Residential has a portfolio that includes 23,907 units in 83 communities. After the sale, the company currently has nine communities in Dallas and 20 in Houston. Gables also has 2,953 units under development or lease-up in Houston, Atlanta, South Florida, Austin, Dallas, Tampa/Orlando and Washington, DC.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.