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SPRING, TX-Mosaic Residential Inc. as acquired the 136-unit, class B Kressington Place Apartments from Reliant Group. The Houston-based buyer plans to pour close to $1 million into the complex.

One of the first things Mosaic Residential did was rename the asset at 7203 Oakwood Glen Blvd. to Cottages of Cypresswood. The next step, says Mosaic Residential partner Abe Bhimani, will be minor exterior upgrades and interior fixes, including new appliances, faux wood flooring and lighting fixtures.

“When this was built it was platted for condos,” Bhimani tells GlobeSt.com. “These are nice, big units, averaging around 1,000 square feet.” Furthermore, the 25-year-old complex perfectly fits the Mosaic Residential requirements, which include a high median residential income nearby and a good school district.

Bhimani explains that before Reliant Group took control of the property, it had belonged to a non-profit agency in Washington D.C., which had a portfolio of seven affordable housing properties. But the agency ultimately defaulted on one of the other properties in the portfolio, and eventually was forced to foreclose. Reliant Group eventually bought Kressington Place.

“When Reliant bought the property, the (affordable housing) bonds went away,” Bhimani explains. “It became a good play for us, because we can go in, fix it up, increase rents and change the demographics.” The current occupancy is 90% and the complex has one- and two-bedroom units. Mosaic Residential financed the transaction with Freddie Mac’s seven-year capped ARM program.

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