HOUSTON-In separate transactions, two private buyers acquired a total of 1,198 units out of foreclosure in the FM 1960/Champions submarket, located north of downtown. BNC, based in California, ended up with the 1,038-unit Cranbrook Portfolio while local investor Hot Ocean LLC bought the 160-unit Cambury Place Apartments nearby.
According to Transwestern's Ed Cummins, the Cranbook Portfolio -- consisting of the Polo Club Apartments, the Monticello Apartments and the Timbers Apartments on Ella Boulevard – attracted approximately 15 offers. "Out of that, we saw six high-quality, comparative offers for the portfolio," says Cummins, who partnered with Transwestern colleague Clint Duncan on behalf of seller TriMont Real Estate Advisors of Atlanta. Cummins says BNC ended up with the portfolio because of a quick turnaround and putting up nonrefundable money from the start.
Cummins tells GlobeSt.com that the new owner is planning modest renovations and deferred maintenance to the tune of approximately $3,000 to $4,000 per unit. "The units themselves are pretty nice," he notes, adding that the majority have washer-dryer connections and have good bones, especially for 1980s construction.
Meanwhile, around the corner, Hot Ocean LLC acquired Cambury Place Apartments on 13725 Cambury Dr. from Florida-based Blue Valley Apartments. Duncan says much of the interest in the 1980s asset came from local owner/operators interested in increasing their portfolios through purchase of a distressed asset. "This is a submarket in which operations have turned and performance during the past couple of years," Duncan tells GlobeSt.com. Hot Ocean LLC, which rents single family homes, acquired Cambury Place to grow its portfolio. "This particular deal is well-built and didn't really require a whole lot of capita," Duncan says. "It was pretty clean and in good condition."
Duncan goes on to say that at closing, occupancy was north of 90%; when the asset first came on the market in early 2012, it averaged in the low 80s of occupancy. The Cranbrook Portfolio , in the meantime, has an aggregate occupancy in the higher 80s; also up from the lower 80s where it was when first marketed last fall. "It's indicative of the strength in that submarket," Duncan comments.
Sales prices were not released due to confidentiality agreements. Cambury Place was listed at $3.5 million while the Cranbrook Portfolio had a $20 million ask.
Amy Wolff Sorter brings close to 30 years of reporting and editorial experience to her role as southwest editor for GlobeSt.com; with more than 10 of those years spent reporting on business and real estate trends. In addition to her duties with ALM, Amy is a copyeditor and writer with Texas Jewish Post.
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