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HOUSTON-GFI Capital Resources Group Inc. of New York City has solidified its footprint in the marketplace, buying a 1,328-unit multifamily portfolio to push its total in the region well above 10,000. Industry experts say a class C portfolio of its size would have brought $18,000 to $25,000 per unit.

The four-property portfolio, all in Harris County, is assessed at slightly more than $17 million. GFI beat off multiple offers by offering hard earnest money. “They weren’t the highest bid on the table, but they were aggressive in the acquisition,” David Wylie, vice president of Apartment Realty Advisors in Houston, tells GlobeSt.com. “There were probably five other portfolio bids on this and around 12 other individual offers that were one-off or two combined.”

Wylie adds the buyer’s willingness to take on the portfolio’s risk was definitely in its favor. He says the complexes aren’t in good condition nor do they have a highly desirable tenant profile. According to Wylie, GFI’s goal is to reposition the properties by making physical and operational changes and re-tenant them. The 25-year-old portfolio is 90% leased. He says the new owner “has a hands-on approach to management and is in town constantly overseeing things and meeting with the staff.”

As for the local seller, the portfolio was the last of the Fifteen Group’s holdings in the city. “We’ve sold six of their properties in the past several years and all to the same buyer,” says Wylie, who teamed with ARA’s Matt Rotan on the sale. “I think they’re looking for class A and B properties that will likely be their bread and butter.”

The portfolio consists of the 308-unit Encore Apartments at 7255 Corporate Dr.; 200-unit Oakwood Gardens at 5625 Antoine Dr.; 428-unit Shadowtree Apartments at 9475 W. Sam Houston Parkway South and 392-unit Stratford Oaks Apartments at 4000 Watonga Blvd.

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