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(Read more on the debt and equity markets and the multifamily market .)

HOUSTON-A Southern California buyer has made its move into Texas through the acquisition of the 270-unit Villas at Cypresswood from its developer. The sales price for the off-market transaction is being kept quiet, but the buyer did secure a $22.4-million loan from Freddie Mac to help snag the asset in Northwest Houston.

Keaton Merrell, vice president with Johnson Capital Partners of Arizona LLC in Phoenix, tells GlobeSt.com that the buyer’s plan is to increase occupancy and reduce concessions for the 96%-occupied complex at 9844 Cypresswood Dr. Working with Johnson Capital principal Jim Pierson to secure financing, Merrell says Solid Goods Corp. will self-manage the asset, which was acquired from Davis Development in Stockbridge, GA in a direct deal.

Merrell says the Villas’ new owner isn’t looking for any more deals in Texas right now. “I suspect he might want to get entrenched on this deal first. Then, he might look for other opportunities,” he says, adding that the buyer has an aggressive management plan in place.

Merrell says the class A complex interested many lenders, particularly since it’s in an area with single-digit occupancy in its multifamily sector. And, he adds, the renter’s market will continue to tighten if predictions are on track about Houston’s increasing job creation.

Merrell says Freddie Mac provided the best terms. The long-term loan has a fixed-rate with interest-only payments. The specific rate isn’t available although similar loans are carrying a sub-6.15% rate.

The three-year-old Villas at Cypresswood Apartments have a mix of one-, two- and three-bedroom units. Rents range from $819 to $1,539 per month.

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