X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Patience and persistence were the key as a Beverly Hills, CA buyer acquired the 312-unit Gables Augusta. Francis Property Investments came in with the highest bid for the class A asset, beating out about 15 other potential buyers for the class A complex.

“We started working with this buyer last October,” comments Craig LaFollette, executive vice president with CB Richard Ellis” Houston office. LaFollette, who led the CBRE team that represented seller Gables Residential of Atlanta, GA tells GlobeSt.com that during the negotiation process late last year, Francis Property Investments’ equity disappeared.

“They really liked the deal, and kept after it,” LaFollette remarks. “He came back to us in March and said he had everything lined up and wanted to buy it.” Part of the equity the second time around came from a 1031 exchange. Though the buyer came equipped with a Freddie Mac loan, “they had 60% leverage,” LaFollette comments.

LaFollette notes that the buyer, represented by David Joachim of local company International Realty Concepts, was, as he put it, “the needle in the haystack.” For one thing, finding a buyer that would pay Gables’ requested price was difficult.

“You see so few A deals being transacted,” he comments. “Developers and owners haven’t wanted to sell at today’s cap rates. This was a below-market cap rate, and it took a unique buyer to get there.” Though a sales price wasn’t indicated, the Harris County Assessment District assesses the property at $33.3 million.

Completed in 2004, Gables Augusta at 2600 Augusta Dr. has a mix of one- and two-bedroom units. Unit sizes are between 767 and 1,155 square feet and the monthly rent ranges from $1,166 and $1,642.

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?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

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 © 2021 ALM Media Properties, LLC. All Rights Reserved.