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HOUSTON-Following a decade-long hold, 1,575 units in eight class B multifamily complexes have been put on the market by a local investment group. The portfolio, bearing a 6.78% cap rate, has hit the street for $75.7 million.

Mikob Properties Inc. is hoping to have the portfolio under contract by yearend, either in its entirety or through one-off deals, Ed Nwokedi, a director in Houston for Cushman & Wakefield of Texas Inc., tells GlobeSt.com. “It’s a tight marketing period,” he acknowledges, “but with launching it now, we’ll hope to have a close early next year.”

Nwokedi says the 86%-occupied portfolio represents a value-add play, offering a 13.6% yield and strong upside with the right renovations. “Most of the properties were built in the late 1970s and early 1980s. They’re scattered in three main submarkets–Clear Lake/NASA, out west around Memorial and the Galleria,” he says. “We think that because the demos in the neighborhoods are so strong, the products can draw higher rents than they’re currently achieving.”

In the far west submarket, the “for-sale” complexes are the 116-unit Wisteria Gardens Apartments at 611 N. Dairy Ashford Rd.; 182-unit Kensington Club I at 14222 Kimberely Lane and 135-unit Kensington Club II at 14250 Kimberely Lane; and the 223-unit Oaks of Brittany at 1201 Wilcrest Dr.

Mikob’s also selling the 181-unit Capital Estates at 506 S. Austin St. in Webster; 248-unit Balboa Apartments at 2002 San Sebastian Court and 151-unit Harbortree at 17700 El Camino Real, both in Houston; and 338-unit Stonehaven Apartments at 6419 Skyline Dr. in the Galleria submarket. C&W’s Oliver Pereira and Adriane Kurtz are working with Nwokedi to market the portfolio.

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