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HOUSTON-Catalina Development Co. of Greenwood Village, CO has sold the recently completed 336-unit Lighthouse at Willowbrook for just south of the $32.5-million ask. The deal is underwritten with a pro forma-based 6% cap rate on the net operating income.

David Mitchell, vice president in Apartment Realty Advisors’ Houston office, tells GlobeSt.com that the self-represented SMC Management Corp. of Watertown, MA beat 14 other offers for the 93%-leased complex at 12330 N. Gessner Rd. “We’ve had a good relationship with them so we brought them to the table,” Mitchell sells.

Catalina is a merchant builder. “They build at a certain cap rate, then sell based on stabilization,” he explains.

The seller was comfortable with the buyer for several reasons, not the least of which was SMC Management’s ability to close. On the flip side, both buyer and seller use Alliance Communities’ Houston office to manage their properties. “It made the buyer comfortable knowing they’d use the same management team at the property,” Mitchell explains.

Mitchell says the seller is considering a second phase for Lighthouse at Willowbrook, but a groundbreaking timeframe has yet to be set. He predicts another phase would pull as positive response from potential buyers as the first one did.

“This has been one of the nicest suburban deals we’ve seen in awhile,” Mitchell says. “This was laid out well–low-density in the middle of a nature preserve and high-end finishes. We could tell the developer really cared about the details.”

The class A Lighthouse at Willowbrook has a mix of one-, two- and three-bedroom units ranging from 708 sf to 1,284 sf. The rents are $703 to $1,416 per month.

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