X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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

HOUSTON-La Scala Apartments, a 142-unit class C multifamily property in the Galleria submarket, has been sold to Trammell Crow Co., which plans to raze and rebuild the five-acre site with a 380-unit complex. The redevelopment is set to get under way in first quarter 2007.

The dealmakers aren’t discussing the final price for 7510 Burgoyne Rd., but comparable class C properties in the area have sold for upwards of $18,000 per door. Harris County assesses the complex at $4.1 million.

Todd Stewart, senior vice president in Houston for CB Richard Ellis, tells GlobeSt.com that equivalent land prices in the area can range from $30 per sf to $50 per sf. TCC’s redevelopment strategy is becoming common among developers wanting to take advantage of Houston’s market fundamentals.

“Land prices have been escalating over the past two years so developers are looking for infill sites with already existing buildings,” says Stewart, who represented TCC’s investment arm, Wentwood Capital Fund I LP. “That’s what this deal was about.”

In anticipation of the sale, seller GC 127 Voss Holdings LLC of Tacoma, WA began emptying the asset prior to the closing. “The property right now isn’t too far from empty and occupancy is very low,” Stewart says.

Besides Stewart, the CBRE team included executive vice president Craig LaFollette, senior vice president Todd Marix and senior associate Tre Banks. Calls to TCC were not returned by press time.

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. Multifamily Spring 2022 (Formerly APTS)Event

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
Live Chat

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