The Beckford Place complex is located at 13150 Bissonnet St. and was sold by Sterling Systems Inc., a private investor from Houston. Robert Su with the Houston office of Marcus & Millicahp Real Estate Investment Brokerage Co. marketed the property on behalf of the seller. Su tells GlobeSt.com that the complex was on the market for 180 days and garnered approximately 12 offers. Additionally, the property fell out of contract once before going under contract to the buyer.
Once under contract, the deal took another 138 days to close. The reason for the long escrow period, explains Su, is that the complex had an existing mortgage with "sizeable prepayment penalties" thus the buyer had to assume the loan. Midland Loan Services of Overland Park, KS services the loan, which has about seven years left, says Su.
Su says the loan accounts for 80% of the sales price. Also included in the sales price is a $50,000 upgrade to the property required by the lender. The upgrade will include renovations to the staircases, patio, terrace, balconies, interior touch ups and improvements to the paving in the parking lots.
The complex was 90% occupied at the time of the sale. Average unit size is 815 sf and the average rent is $590 per month. Su says the complex was originally developed as a condominium project and consequently over 50% of the units have two bedrooms. The buyer was represented by Mark Noble of the San Francisco office of Marcus & Millichap. Su says the asset is a long-term hold for the buyers.
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