HOUSTON-Gables Residential has sold its only holding in Houston’s northwest sector to a group of California investors for $28.2 million. The sale is tied to Gables’ strategy to locate in “established premium neighborhoods” which, in Houston, translates to inside the 610 Loop, the West Side along Interstate 10 and the First Colony area of Sugar Land, a Gables contact says.

The 404-unit Gables Champions at 5959 FM 1960 West was not on the market, a contact for the Boca Raton, FL-based apartment owner tells GlobeSt.com. The buyer came knocking on Gables’ door, he confides.

Gables acquired the asset in 1998, three years after it delivered. The property, consisting of about 29 acres, carries a $20.8-million assessment for this year, according to the Harris County Appraisal District.

Gables CEO Chris Wheeler, in a press release, said a $7.5-million gain will be recorded for the sale. He added the 95%-leased complex had a “Main Street cap rate” of 6.4%, but the “un-leveraged IRR was 12.4%.” The units, ranging from 665 sf to 1,233 sf, bring in monthly rents of $680 up to $1,100.

For Gables, it’s the second time in about a year that it’s sold multifamily product in the northwest submarket. The other was a joint venture interest in the Raveneaux apartments. Though exiting the northwest submarket as a property owner, Gables will remain as the property manager for Limestone Ranch at 12655 Crossroads Park Dr.

The Gables’ portfolio now contains 80 properties, with 11 more under development. Its target markets are Houston, Austin, Dallas, Atlanta, Tampa, South Florida and Washington, DC. Nationwide, Gables manages 159 multifamily communities.

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