CNC Investments Ltd. acquired the 400-unit complex at 10350 Lands End Dr. from Chicago-based TVO Realty Partners, marking its eighth sale in three years in the city.
Stancliff Park, which was on the market about 30 days, is a stand-out property with a strong performance record in a softening market, says M. Todd Marix, senior vice president in the local office of CB Richard Ellis Inc. "That is a rare thing," he tells GlobeSt.com. He credits the complex's performance--occupancy and ability to collect an average rent of 79 cents per sf--to its proximity to two schools, both within walking distance for tenants' children.
Marix says CNC Investments and TVO closed the transaction in about 45 days, with the buyer securing new financing from Column Financial. Ken Lawrence of Lawrence Mortgage in Houston arranged the loan.
TVO Realty has culled its local portfolio to two properties, with its Lake Jackson asset sitting under contract. Marix says TVO Realty has attempted to offset the sales with acquisitions in the city, but as yet has not acquired any replacement properties. Marix is confident, though, that the firm will buy other properties in metro area in the future.
Built in 1983, Stancliff Park sits on 13.9 acres and has units averaging 804 sf. The Harris County Appraisal District assesses its value at $11 million.
Marix believes CNC will put some money into the complex although it traded in good condition. He says the buyer, which has 40 other multifamily properties in the region, views the asset as a long-term hold. Marix, along with G. Craig LaFollette and J. Todd Stewart, also senior vice presidents with CBRE's local office, negotiated the transaction for both sides.
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