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HOUSTON-In a long-term investment play, an Englewood Cliffs, NJ-based multifamily investment group has paid close to the $24-million asking price for the 324-unit, class A, Lodge at West Oaks in Houston’s far west submarket.

The four-year-old complex at 14913 Richmond Ave. was sold by its developer, the Hanover Group. Chip Nash in the Houston office of Hendricks & Partners tells GlobeSt.com that the listing was on the market for eight months and received a number of offers to deliver a price well in excess of the $15.2 million assessment by Harris County Appraisal District. The deal’s fundamentals pointed to Raamco International as having the best ability to make the close, he adds.

Nash says there was a bit of tension in trying to close the deal due to the class A market’s falling occupancy, now at 89%. The Lodge at West Oaks was 90% leased at closing time, but still it created some difficulty in obtaining the Freddie Mac backing, says Nash. He faults overbuilding as the culprit for the class A market as well as the economic cloud hanging overhead, but predicts occupancy will start rising again in a year.

The Lodge at West Oak has units that average 885 sf and bring in an average monthly rent of about $800 apiece. The buyer of record is Raamco Lodge at West Oaks LP.

Nash and Ed Cummins III in Hendricks’ Houston brokered the sale. The buyer, who intends to manage the complex, owns about 6,000 units in Houston.

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