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STAFFORD, TX-Proving that patience is key in today’s real estate market, RealSource closed on its first buy in Houston, the 264-unit Alexan Stafford for around $85,000 per door. The Salt Lake City, UT-based buyer spent six months in escrow trying to get financing for the class A complex before Freddie Mac stepped up with financing.

“Back when this was first marketed, we had around 10 offers, but this was a long time ago, before the market slowed down,” says Apartment Realty Advisors principal David Mitchell, who represented seller Trammell Crow Residential in the transaction. Also representing the seller were Apartment Realty Advisor principals David Wylie, Matt Rotan and David Oelfke.

On the positive side, Mitchell continues, the three-year-old complex at 12700 Stafford Rd. will provide immediate cash-on-cash return to RealSource, a TIC investor. “They bought this at around a 7.25 cap and put 5.5% financing,” he adds. “The deal probably includes interest-only financing in there for a couple of years.

But the deal had qualities other than the fact it came with a long escrow and a decent loan arranged by Capmark Mortgage. Mitchell tells GlobeSt.com that deals with a low 7 cap rate are few and far between these days. Nor are buyers looking for them. “The few buyers out there right now are all looking for distressed real estate and 20%-plus returns,” he comments. “But this was a TIC buyer that was looking for a stable cash flow.”

The Alexan Stafford consists of 12 three-story buildings situated on 11 acres. The complex has a mix of one-, two- and three-bedroom units. Monthly rents are from $785 to $1,495. Mitchell says the complex was 90% occupied at time of closing, with approximately one month free rent as a concession.

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