X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

KATY, TX-A developer from Columbus, GA has paid close to $30 million in cash for a neighboring property, the 430-unit Kingston Villas. The five-year-old complex was 92% leased at sale time.

Flournoy Properties was one of 10 bidders who surfaced during a 45-day marketing for the 21540 Provincial Blvd. complex, Ed Cummins, a senior investment adviser for Hendricks & Partners in Houston, tells GlobeSt.com. The asset was listed at $30 million, but traded for slightly less, he says.

Kingston Villas was sold by Kingston Villas Ltd., an affiliate of TRex Capital of New York City. The firm took possession of the complex just over a year ago from Houston-based NBC Holdings after it acquired the B-piece debt, Cummins says. NBC Holdings reportedly paid $30 million for the property.

“This is a market play for Flournoy,” Cummins explains. “They can buy at a reasonable return now and as concessions wane in the market, they can enjoy an increase in operating cash flow.” He adds the asset, which abuts Flournoy’s 369-unit Vineyards, traded for well below the replacement cost.

The 92%-leased Kingston Villas consists of 29 two-story, garden-style buildings and a 5,340 sf clubhouse and business office on 30.5 acres. It is a mix of 210 one-bedroom units, 196 two-bedroom apartments and 24 three-bedroom designs. Units go from 692 sf to 1,413 sf, with rents ranging from $685 to $1,350 per month.

According to Cummins, Flournoy Properties paid cash and proceeds from a condo project in Atlanta to acquire Kingston Villas. Jim Hearn, also with Hendricks & Partners’ Houston office, partnered on the sale.

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 SPRING 2021Event

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

Get More Information
 

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