Houston Investor Buys 166-Unit Complex

HOUSTON-The $6.1-million price tag hanging on the 166-unit Pagewood Place attracted 11 offers, with a Houston-based investment group winning the race for a value-add opportunity in a hot submarket.

G. Craig LaFollette, senior vice president with the Houston office of CB Richard Ellis Inc., tells GlobeSt.com that the $6.1-million ticket on 9767 Pagewood Lane represented a great deal for the Westchase submarket. Titan Management took the deed to the 93%-occupied, value-add property and now is in the beginning stages of adding individual meters in units to get away from owner-paid water bills. The immediate plan also calls for the replacement of exterior siding.

LaFollette says the buyer will update interiors as leases roll and then impose a rent hike. The improvements, he says, should raise rent by about a nickel per sf. Right now, the monthly rent is 77 cents per sf or $570 per month for an average unit of 738 sf. He estimates the buyer will be putting about $2,000 into each unit.