Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-In a hard-hitting multifamily exit, the locally based RCA Holdings Ltd. has brought another 2,432 units to market for $99 million just a month after it hit the streets with 2,951 apartments tagged for sale at $171 million. The latest round consists of 10 properties in Houston.

A month ago, RCA came out with 1,314 units in Dallas/Fort Worth; 1,196 units Las Vegas; 250 units in Sacramento, CA; and 191 units in Biloxi, MS. Don Ostroff, senior director of the Cushman & Wakefield Multi-Housing Group, tells GlobeSt.com that RCA planned a two-phase exit play from the onset of the decision to sell.

“RCA has held many of these assets for a long time,” Ostroff says, “and the owner intends to take the proceeds from the portfolio to help increase the scope and activities of his non-profit foundation.” The properties were acquired over the past decade.

The 10 extra properties, primarily built in the 1970s, have occupancies ranging from 85% to 93%. Their combined debt, which must be assumed, totals $75.5 million. The 362-unit Waters on Brompton at 7315 Brompton St. and 234-unit Briargrove Court at 1202 Seagler Road are at the halfway point on 10-year Freddie Mac loans. The remaining 17 properties in the portfolio were refinanced in 2001 with Bank of America loans with terms through 2011. The entire package has an average interest rate of 7%.

“RCA is a location buyer,” Ostroff says. “These are carefully chosen assets in premium submarkets including the Medical Center, Westchase, Greenspoint and Champions.” Besides Ostroff, the C&W team includes Will Balthrope, also a senior director, and Susie Kakos, associate director, along with David Chuoke, senior director in Houston.

Ostroff says the initial portfolio to date has received multiple offers, some already interested in the entire package. The first offer’s deadline is at the end of this month and the second shuts down a month later.

The other add-on properties are the 384-unit Royal Phoenician at 16900 Northchase Dr.; 354-unit Waters at Champions at 2431 FM 1960 West; 296-unit Regency Arms at 6363 San Felipe St.; 256-unit Waters at Kirkwood at 11710 Briar Forest Dr.; 108-unit Park Plaza at 10010 Westpark Dr.; 80-unit Braeburn Villa at 9600 Braes Bayou Dr.; and the 52-unit Parkwest Place at 10161 Westpark Dr.

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?

GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.