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HOUSTON-GE Real Estate and Trammell Crow Residential are poised to launch construction in the coming months on two Alexan-branded complexes. The recently formed joint venture will build the 412-unit Alexan Eagle Creek in northeast Houston and the 350-unit Alexan Ribelin in Austin.

Mark DePucchio, managing director for GE North American Equity in Norwalk, CT, says the JV is targeting more sites in Texas and elsewhere in the US although there is no set development goal. “TCR is an outstanding developer. They have a lot of experience on a national basis and do a good job of delivering the product on time and within budget,” he says. “With all the changes in the market recently, TCR is a strong partner with a great product.”

DePucchio tells GlobeSt.com that the joint venture is planning to sell the Alexan complexes at completion or sooner. The first units for the two projects will come on line by year’s end.

“When the market says we can maximize our value, that’s when we sell,” DePucchio explains. “If we can stabilize the numbers even before completion, we’ll put the property on the market. Our plan with TCR is to develop and sell.” He says the JV, though, has underwritten the projects for three-year holds.

DePucchio says GE is investing $8.6 million of equity or 75% of the loan to cost into the Alexan Eagle Creek, which will be built on 19.5 acres along Beltway 8. The project is designed with one- and two-bedroom units that will range from 800 sf to 1,300 sf. Estimated rents will average $975 per unit.

In Austin, GE has invested $9.59 million of equity, also at a 75% loan to cost, into the Alexan Ribelin, which will be built on 17.55 acres at McNeil Road and Rural Route 2222. The 15-building complex will have one-, two- and three-bedroom units, averaging 1,000 sf. The estimated average rent is $1,115 per unit.

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