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HOUSTON-Working out a sale under the radar screen, a Salt Lake City TIC group has acquired the 466-unit Northwest Corners Apartments. Sources say the renovated complex brought $16 million to $18 million for its long-time owner.

Cottonwood Capital LLC, a group of investment bankers marking its first TIC buy, kept the seller in place to manage the asset as part of the sale conditions, Douglas Lockwood with Grubb & Ellis Co.’s Houston office, tells The 33-building complex, positioned on 20 acres at 8520 Pitner Rd., was 96% occupied at sale time.

The local seller of record, Pitner Northwest Corners Apartments Inc., acquired the complex in 1993, paced it through a major overhaul over a seven-year period and refinanced it four years ago. “By 2005, they said ‘maybe it’s time to sell,’” Lockwood says, adding the conduit loan was retired at the closing.

Lockwood says the class B-minus asset traded at an 8% cap rate, about two points higher than many class A properties in the region. That and the major overhaul were the convincing factors for the TIC’s backers. “That’s why the TIC was able to come in and make the case,” he says.

Northwest Apartments will continue to operate as it has in the past–without any concessions, says the deal’s sole broker. The one, two- and three-bedroom apartments average 765 sf, with the median rent bringing $560 per month. Some tenants, Lockwood says, have been in place since 1994.

“It was an excellent buyer and excellent seller,” Lockwood stresses. “It was a very discreet deal and it was a smooth transaction.” The trade, he adds, was the seller’s largest and last multifamily property in its portfolio.

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