Scandinavian Fund Wins 595 Units in Galleria

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

HOUSTON-A Scandinavian pension fund, advised by Invesco Real Estate in New York City, has made its first buy in the city, taking on the 595-unit Woodway Square Apartments in an all-cash deal. Market sources believe the asset traded for $140,000 to $150,000 per unit.

Cornerstone Real Estate Advisers LLC of Chicago owned the class A complex for 10 years. According to Craig LaFollette, executive vice president with CB Richard Ellis in Houston, that’s typically the maximum holding period for most pension funds. “It was time for them to sell. And, it happened to coincide with a good market,” says LaFollette, who brokered the transaction for the complex at 1200 Winrock Blvd.

LaFollette tells GlobeSt.com that Cornerstone spent $5,000 per unit to upgrade 70 units with new flooring, cabinets, fixtures and appliances. As a result, residents in the renovated units were spending $100 to $150 more per month on rent. “Lincoln Property Co. was the property manager for Cornerstone and the new owners are maintaining Lincoln and going forward with the rehab,” LaFollette says.

The buyer beat 17 other offers from REITs, pension funds and individual investors for the 95%-leased complex because it had the best offer and a quick close. “Once they got through due diligence and signed off on it, they sent the money for closing two weeks later,” LaFollette says. The CBRE team included senior vice presidents Todd Stewart and Todd Marix and senior associate Tre Banks.

Built in 1992 and situated on 20 acres, Woodway Square has a mix of one- and two-bedroom units, ranging from 736 sf to 1,612 sf. Monthly rents start at $923 and top out at $1,949.