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.

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?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



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 © 2024 ALM Global, LLC. All Rights Reserved.