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HOUSTON-Following 18 offers during a 30-day marketing period, the foreclosed Briargrove Court, a 234-unit multifamily property, has been sold to a Birmingham, AL investment company with a repositioning reputation.

Abbey Residential, formerly Investment Company of the South, bought the 8.1-acre development at 1202 Seagler Rd. as part of a 1031 exchange. Freddie Mac put the foreclosure on the market for $8.9 million. The final price is being withheld, but the current Harris County assessment is $7.36 million.

“This is a great neighborhood deal in Houston for them,” comments David Wylie, vice president of Apartment Realty Advisors’ Houston office, who represented Freddie Mac. Abbey Residential used in-house brokers to close the deal.

Wylie tells GlobeSt.com that among the many offers received for the listing came several from “single-family guys wanting to tear the property down and build homes.” One reason why Abbey Residential got the nod for the sale was because its plan is to upgrade the 32-year-old complex rather than to tear it down. The renovation budget wasn’t readily available, but Wylie predicts it could go as much as $1 million to $2 million. Abbey’s other advantages is that it has “a good relationship with Freddie Mac, which highly recommended them,” Wylie says. “They had an aggressive price too. They weren’t the highest, but Freddie Mac wanted to go with someone they already knew and trusted.”

The 73%-leased complex has 135 one-bedroom units and 99 two-bedroom apartments, ranging from 760 sf to 1,442 sf. Rents go from $580 to $1,020 per month.

“This was a C-minus property when bought,” Wylie says. “But by the time they’re done with it, it’ll likely be a B-plus or A-minus property.”

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