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

HOUSTON-A Birmingham, AL company has broken into the market with the acquisition of the 428-unit Remington Park Apartments. Local sources speculate the six-year-old complex most likely has sold for $35 million to $40 million.

According to David Wylie, vice president of Apartment Realty Advisors’ Houston office, local seller Creekstone Cos. received 14 bona fide offers for the class A asset at 5510 S. Rice Ave., assessed at $28.7 million by Harris County. “This is in a very good location and was aggressively sought after, both by private and institutional investors,” he says.

Investment Realty LLC did not have the highest bid, however. “The guy with the highest bid had the most unreasonable insurance number and he simply didn’t get it,” Wylie tells GlobeSt.com. “The second guy in line had access to more reasonable insurance, which allowed him to win this.”

Wylie says Investment Realty is on the hunt for more area assets, with one property under contract. A late 2006 closing is scheduled.

On the other side of the deal, a hot market prompted Creekstone to sell. “Private buyers and institutional investors are in the market now, making a more competitive environment and pushing prices up,” Wylie says. “Cap rates are still pretty low, but now research is pointing to the area as an A-plus one for investment so there’s been a lot of interest.”

Remington Park is situated on 15.7 acres between the Bellaire and Galleria submarkets. The 99%-leased complex has one- and two-bedroom units averaging 932 sf. The average rent is $996 per month.

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