X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-A San Antonio-based buyer, with GE Capital as a partner, has spent almost $8 million for the 174-unit Boardwalk apartments in Houston’s southwest submarket. The sale has closed at a cap rate north of 8%.

The Lynd Co.-GE Capital partnership assumed a $5.9-million Fannie Mae loan and rolled in a second mortgage to close the deal, Jim Hearn in the Houston office of Phoenix-based Hendricks & Partners tells GlobeSt.com. The buyer of record, GEL Boardwalk LP, outbid 10 other investors lining up for the class B asset at 9100 Fondren Rd.

Hearn says the “north of 8%” cap rate helped the buyer clear “its return hurdles” in the acquisition from Boardwalk Houston Investors, a general partnership with Dallas-headquartered Meridian Realty Advisors Inc. as principal. Hearn, who sold Meridian’s other property awhile ago, says the turnaround pro for out-of-favor or liquidity-challenged assets simply decided the time was right to exit Houston.

The new owners, eyeing upside in a rent hike, will spend about $200,000 to upgrade the 26-year-old Boardwalk complex, a mix of one-, two- and three-bedroom units on 7.7 acres. Units average 1,076 sf with the monthly rent resting at $840 without concessions. Occupancy is hanging in the low 90% range.

The Lynd Cos., which owns other properties in Houston, has spent about $350 million in the last two years on multifamily acquisitions. Its current portfolio, managed and owned, totals 17,000 units in nine states.

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

*May exclude premium content
Already have an account?

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.