HOUSTON-One of the nation’s largest multifamily REITs has sold a 352-unit complex in North Houston to Canadian investor, DSTAR Inc.
Todd Marix, first vice president with the Houston office of CB Richard Ellis Inc., tells GlobeSt.com that Denver-based AIMCO typically does not affix listing prices with its properties, but the financial expectations for offers on Sandalwood hovered around $8 million. The actual sales price was not disclosed.
The property is positioned at 311 Highland Cross near the intersection of FM 1960 and Interstate 45. It was on the market about 45 days, drawing some 20 offers, says Marix. The 23-year-old complex offered upside potential in rent and occupancy.
Marix says the property had an occupancy rate in the low 80% range at sale time. Its neighbors are boasting rates in the 90% range. The same is true of the Sandalwood’s rent, which is averaging 72 cents per sf or $494 per month. A like property right next door is getting 78 cents per sf or $534 per month. Marix says the difference is Northpark Crossing has been extensively rehabbed and has more attentive management. Sandalwood was sharing management with another AIMCO property.
According to Marix, the new owners plan to devote more time to management plus upgrade the complex. He’s not sure how much will be spent, but is certain the improvements will be made.
G. Craig LaFollette and J. Todd Stewart, senior vice presidents with CB Richard Ellis, and Marix represented AIMCO and found the buyer for the complex, which is assessed at $6.7 million for 2002. AIMCO has owned the property since 1984.