X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the multifamily market.)

HOUSTON-A San Francisco-based investment group has sold a 232-unit complex after a 1.5-year hold and nearly a $1-million renovation. The Related Cos. LP of New York City has paid close to $8.85 million for the class B asset.

The Arbor Court Apartments at 802 Seminar Dr., a 97%-leased HUD property, traded at a 6.9% cap rate. The deal went from offer to close in 65 days, according to Jeff Eisenhardt, senior adviser in Hendricks & Partners’ Houston office.

“We had about 10 offers on it and ended up getting Related as the buyer,” Eisenhardt says, adding it was marketed to a national client base as well as specialized HUD buyers. He tells GlobeSt.com that the Related Cos. had come out of an exchange and needed to close fairly quickly, which is why it got the nod to buy. “They bought it–signed, sealed and delivered,” he adds. “This fit what they were looking for and requires no upgrades.”

Eisenhardt says Arbor Court had deferred maintenance and management issues when the seller, Arbor Court LP, bought it in late 2005. The turnaround plan included new roofs and planks, re-doing the drainage system, landscaping and some interior upgrades. The seller also weeded out non-paying tenants and changed management as part of the value-add plan.

Situated on 9.44 acres, the 28-year-old complex has one- and two-bedroom units ranging from 583 sf to 896 sf. Rents are 78 cents per sf.

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. APARTMENTS SPRING 2021Event

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

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