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HOUSTON-Canfield Houston, an affiliate of New York City-based Cannon Development LLP, has put its sixth apartment asset in the Bayou City under contract. The buyer expects to close on Cypress Parke, a 346-unit, class B complex, in early January.

Canfield Houston is set to pay $10.9 million, or $30,478 per unit, for the 25-year-old development to FSF Tealwood Associates LP, a private investment company from Lake Forest, CA. “It has a good turnaround story,” says Todd Marix, senior vice president in CB Richard Ellis Inc.’s local office. “It just needs some capital and some closer supervision.” The CBRE team also includes Craig LaFollette and Todd Stewart.

Situated on 14.6 acres at 990 Cypress Station Dr. in North Houston, Cypress Parke consists of 40 two-story buildings. It is undergoing exterior renovations, including paint and carpentry.

The 92%-leased Cypress Parke has 188 one-bedroom units, 126 two-bedroom apartments and 32 three-bedroom floor plans. Units range from 735 sf to 1,281 sf while rents run from $482 to $785 per month.

Marix tells GlobeSt.com that Cypress Parke, a value-add opportunity, received more than a dozen offers before going under contract to Canfield Houston. “We had offered it on the basis of assuming an existing loan, but we found the loan assumption process to be almost impossible so it fell in and out of contract,” he says. “The solution was to pre-pay the existing loan and do an all-cash deal. There was greater value in paying off the loan that trying to assume it.”

According to Marix, Canfield Houston has a very aggressive repositioning plan for Cypress Parke, similar to the plans it had for its other area acquisitions. Since May, the company’s acquired five multifamily properties in Houston. In October, it spent $51 million for three complexes in separate transactions.

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