Sacramento Investor Buys 346-Unit Complex

HOUSTON-A class C multifamily asset, with an $8.8-million asking price, has been sold to a private investor from Sacramento, who beat out 11 others for the 346-unit vintage property on Houston’s West Side.

The 90%-leased Westview Forest Apartments at 10110 Westview is now being primed for a major upgrade, Ed Cummins III in the Houston office of Phoenix-based Hendricks & Partners tells GlobeSt.com. The buyer’s upside is the ability to raise the rent once the rehab is done. He says the post-renovation rent could edge to the 65-cents-per-sf range. Today’s rent is 57 cents per sf or about $491 per month for units averaging 862 sf.

Cummins and Mark Hendricks, also in the Houston office, brokered the sale of the 11-acre development. According to the Harris County Appraisal District, the early 1970s-era complex is assessed at $6 million.

The seller is a local investment group, which is gradually exiting the multifamily market. Westview Forest, owned for the last decade by Houston Westview Investments, is the fourth complex in three years that Cummins has sold on the group’s behalf. He says another most likely will sell before the year ends.

Westview Forest attracted about a dozen offers in the six months it was on the market, according to Cummins. The holding neighbors three other multifamily properties and a single-family development. One of its key advantages is the location near high-demand residential areas along Interstate 10 and Gessner Road.