X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Canfield Houston, an affiliate of New York City-based Cannon Development LLP, expands its presence with the acquisition of three multifamily properties in separate transactions for a total of $51 million. The class B complexes–Crystal Cove, Laurel Creek and Westbrae Apartments–are scattered throughout the metropolitan area.

“We like these assets because we were able to buy them at below replacement cost,” Shalom Lamm, a principal with Cannon Development, tells GlobeSt.com. “There’s a saying that the best time to buy is where there’s blood in the streets. There a big opportunity to buy in Houston because some owners are hurting. We are counter-cyclical in our acquisitions.”

Canfield Houston, which entered the Houston market in May, now owns five apartment complexes. And, the investment group is in negotiations to spend another $28 million for two more complexes with 800 units.

Crystal Cove and Westbrae Apartments were purchased from Nashville-based Freeman Webb Co. for a total of $18.1 million. With the dispositions of the two complexes, the company is exiting the Texas market, says Judy Beasley of the Freeman Webb. She says the company spent nearly $10.2 million when it bought the 167-unit Crystal Cove in 1996 and 288-unit Westbrae Apartments in early 1997.

The 5.7-acre Crystal Cove, built in 1983, is located at 15615 Blue Ash Dr. on the city’s north side. It is a mix of 30 efficiency units, 120 one-bedroom designs and 17 two-bedroom apartments. The units, averaging 716 sf, rent for an average of $597 per month. The complex is 98% leased.

Westbrae Apartments, built in 1984 on 9.5 acres at 10750 Westbrae Parkway, is a 50-50 split of one- and two-bedroom units in 28 buildings. The West Houston property has units averaging 792 sf, rent, with a median monthly rent of $605. The complex is 89% leased.

Canfield Houston acquired the 696-unit Laurel Creek, built in phases in 1985 and 1998, from WDOP Sub I LP, an arm of Dallas-based Walden Residential, for nearly $33 million. The complex, located at 12510 South Green Dr. at the intersection of Interstate 45 and Beltway 8, has one-, two- and three-bedroom units averaging 781 sf. Monthly rents average $670. The 32-building complex is 89% occupied.

Lamm says the company plans to invest $3,000 to $13,500 per unit to rehab the acquisitions. “We think we will be able to offer a value that our competitors can’t match,” he says.

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.