(Read more on the multifamily market.)

HOUSTON-Six months after its launch, Mosaic Residential Inc. has taken its first deed in its backyard: the 259-unit Mansions of Shadowbriar Apartments. Similar sales have closed at $35,000 to $45,000 per door.

The new owner is planning to spend $1.7 million to upgrade to the 93%-leased, class B complex at 12200 Overbrook Lane. The Mansions of Shadowbriar was built in 1982 as a 328-unit condominium project, with 69 of the units now individually owned. Jay O’Connor, Mosaic Residential’s founding partner, says the company will run the complex as a rental just like the seller, Sendera Investment Group of Austin.

O’Connor says the 12.5-acre asset stands to gain upside from its location, which is near major employment centers and across the street from Shadowbriar School at 2650 Shadowbriar Dr. “We look for deals with exemplary schools nearby,” he says, “and this is one of the best schools the HISD [Houston Independent School District] has to offer.”

In addition, O’Connor tells GlobeSt.com that “we also feel there’s the ability to increase rents significantly once we’re done with renovations.” Upgrades will include new countertops, floors, blinds appliances, lighting and plumbing fixtures.

The Mansions of Shadowbriar, a mix of one- and two-bedroom apartments, has an average rent of $660 per month. Units average 803 sf.

Harbor Group International LLC of Norfolk, VA, was Mosaic’s equity partner in the deal. Apartment Realty Advisors in Houston brokered it.

Since its launch, Mosaic has acquired two complexes in Plano, TX and is eyeing other deals in Austin and the Dallas-Fort Worth area, which O’Connor says should close in the first quarter. “We’d like to do six deals in 2008, though we anticipate the deal volume in multifamily housing in general will be slower during the next year both locally and nationally,” he adds. “Our buying criteria are largely driven by income levels within a one-to-five mile radius.”

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?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 © 2024 ALM Global, LLC. All Rights Reserved.