The buyer delivered what the seller ordered: a quiet and quick marketing period. JPMorgan's ability for an all-cash gave it the leverage to take the keys, Bill Miller with the Houston office for Holliday Fenoglio Fowler LP tells GlobeSt.com. The class A complex sits on 18 acres at 8900 Research Forest Blvd. in the Woodlands, a community located 27 miles north of Houston.
SDGA Investments Inc., a Kemah, TX-based investment group funded by an Italian national, marketed the property to an "abbreviated list" of buyers, garnering 10 offers in three weeks before going under contract to the New York City-based JPMorgan, which acquired the asset on behalf of a commingled pension trust fund, says Miller. He and Greg Pappas, also in HFF's Houston office, negotiated the seller's side of the deal.
SDGA, which has two other multifamily properties in the Houston area, developed the Park at Research Forest in 2001, but there was no financing pressure to sell, according to Miller. From the onset, the seller built the project with the intent to sell, he says.
The complex was 84% leased at sale time. That, Miller says, leaves room for upside potential since the submarket's average occupancy is about 92%. The average unit is 984 sf; the average rent, $1 per sf.
The complex is surrounded by the Woodlands' upscale neighborhoods, where multifamily properties are fairly well spaced. A key selling point for tenants and most likely the buyer is the development's close proximity to the town center and Interstate 45.
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