Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-CONTI Organization has entered the area market through its acquisition of a non-performing loan on the 266-unit Lenox Court Apartments. CONTI acquired the note for under $3.45 million foreclosed on the asset, and re-named it Villa Adora Apartments.

Company principal Stewart Hsu company principal tells GlobeSt.com that CONTI liked both the asset and the city. So when the opportunity arose to buy the note, and then foreclose on the property at 10534 Beechnut St., the Dallas-based company took it.

Hsu explains that the former owner had the asset for about five years, ran into problems and stopped making payments. The lender approached CONTI to ask if the company was willing to buy the loan at a discount.

“Now we have our team in there, fixing it up,” Hsu says. The “fix-ups” involve interior renovations and a redo of the exterior, as well as parking lot repairs, signage, landscaping and a redo of the leasing office. CONTI plans a $1.4 capital investment into the asset.

CONTI continues seeking out viable assets, mainly distressed with a value-add component, in major Texas cities including Houston, Dallas, San Antonio and Austin. To help fund some of those acquisitions, CONTI has launched its first fund. CONTI Fund I will likely be leveraged up to $30 million. Hsu tells GlobeSt.com the company expects to deploy the majority of the capital within the first six to nine months of 2010.

“Technically this is our first fund, but we’ve raised $10 million before, it just wasn’t as formalized,” Hsu explains. “Now we have a track record we can point to of acquisitions.” He says CONTI has a number of offers out on assets, but nothing under contract at this time.

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?


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

Get More Information


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.