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HOUSTON-Los Angeles-based Post Investment Group has acquired more Texas assets for its portfolio, this time picking up two from foreclosure. Between acquisitions and planned rehab, the company will spend in excess of $40 million on Serrano Apartments in Houston and Longhorn Station Apartments in Austin.

Both assets share some traits in common; they were both purchased out of bankruptcy and both will offer some positive upside following renovations. Otherwise, the two are vastly different from one another.

Serrano Apartments at 14723 W. Oaks Plaza St. was built in 1999 by Fairfield and owned by MBS before that company went into bankruptcy. Jason Post says renovations will include new roofs. Also on the board are a new paint job and a lease-up; the current occupancy is at 30%. “This has been lingering in bankruptcy court for two years,” Post says.

Post tells GlobeSt.com his company had been pursuing the asset since November 2008. “It was our understanding that this had gone under contract several times this past year, but the buyers couldn’t obtain the financing,” Post remarks. He says Post Investment assumed the 4.69% mortgage. Ed Nwokedi with Cushman & Wakefield of Texas negotiated the deal.

Meanwhile, in Austin, the 1970s Longhorn Station Apartments is receiving both face lift and name change. A Northern California owner had the complex prior to its foreclosure and Post acknowledges it’s somewhat older than Post Investment’s typical buys. “We’ve wanted to move into the Austin market for some time and saw value in the infill urban market south of downtown,” he says. The renovations are short of a complete overhaul and range from a full amenities package inside the units to replacement of woodrot and painting on the exteriors. “Many units are fully offline,” Post says. “Approximately half the balance currently online are in deplorable shape.”

Furthermore, he goes on to say, the property has a negative reputation in the submarket. “That’s why we’re investing in it to improve the condition, to rebrand the asset and attract quality tenants to live at the property.”

As Post Investment starts renovating its newest finds, the company is looking toward 2010 for more buys. Post says the company has some distressed deals in the pipeline that could close as early as Q1 2010.

“Our goal in 2010 is to have a blended mix in our portfolio between distressed and core-plus, with some light value-add,” Post remarks. “We’ll still stay true to Texas; that’s where we’ve been focused, but we’re also looking throughout Arizona, the Carolinas and will start back to Southern California.”

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