KINGWOOD, TX-Following a lease-up on its 192-unit Kings Cove Apartments, merchant builder Dinerstein Cos. sold the complex to SCI Real Estate Investments LLC in Los Angeles, CA. Kings Cove’s occupancy is 97%, and it’s one of a handful of class A assets on the market that made it to closing.

The complex, completed in 2007, sits on approximately 5.5 acres at 4920 Magnolia Cove Dr. The brokers kept mum on the sales price, but the Harris Central Assessment District values it at $7.9 million. Similar class A assets have traded in the past for between $65,000 and $80,000 per door.

“This was a really good sale because class A sales have shut off completely,” comments David Wylie, principal with Apartment Realty Advisors’ Houston office. Wylie, who represented Dinerstein in the transaction, says the buyer beat out seven other offers for the complex.

“That’s a trend,” Wylie tells “Time was, we’d get 20 offers for that complex. Eight for this one was a great showing.” He says SCI obtained financing for the buy, but was not aware of the details.

The complex has one-, two- and three-bedroom units ranging from 707 square feet to 1,368 square feet. Monthly rents are from $855 to $1,520.

He says Dinerstein decided to go with SCI on this deal because of buyer familiarity. In this market, Wylie notes, a previous relationship helps when it comes to buyer selection. “In this economy, people are taking a look at proven closers, versus a few more dollars,” he adds.

Kings Cove Apartments is adjacent to the $50 million Kings Harbor Waterfront Village. The 20-acre project in this far north Houston suburb is being developed by Midway Cos. and has a mix of apartments, townhomes and restaurants.

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