STAFFORD, TX-A Northeastern US joint venture has acquired the 370-unit Reserve at the Fountains in a Houston suburb by assuming a loan and taking out a second mortgage for a combined debt of about $22.8 million.

Stonepost Properties Inc. of Hackensack, NJ, and CMS Cos. of Philadelphia bought the 21-building complex at 10502 Fountain Lake Dr. in Stafford from its developer, Atlanta-based Trammell Crow Residential. The class A complex, sitting on 15-plus acres, was developed in 1998.

The buyers nor the seller will talk about the closing price. Bill Forrest with the Houston office of Sperry Van Ness Realty Advisors says the Reserve likely brought $25 million to $27 million, based on the current monthly rent average of $940 per unit. Fort Bend County has attached a $23-million assessment to the property.

Gerry Gontowik, president of Stonepost Properties, tells that the plan is to pump several hundred thousand dollars into upgrades, including a new paint job for the exterior and some interior upgrades. Over time, rents will be raised in the 94%-leased property, where units average 965 sf, says Gontowik, who’s extremely positive about the asset’s future and bullish on Fort Bend County, particularly the job growth forecast.

To close the deal, the JV assumed a $22.2-million loan, with a 30-year amortization and 6.87% interest, that Trammell Crow Residential secured in summer 1999 through Freddie Mac. The JV also took out a second mortgage with a 25-year amortization and 5.56% interest rate. The combined debt was about $22.8 million at closing time. Kerry French, senior director in Houston for Minneapolis-based NorthMarq Capital Inc. arranged the JV’s financing as he did in 1999 for the Freddie Mac package.

Trammell Crow Residential executives in Houston did not return telephone calls for comment by publication time. Matt Rotan with Southwest Residential Partners in Houston represented Trammell Crow while the JV relied on its inside brokers to negotiate the purchase. Stonepost Properties owns in excess of 1,000 units in the Fort Bend County submarket and another 4,000 apartments in Houston, of which one-fourth are co-owned with CMS Cos.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

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

  • Free unlimited access to'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 and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.