Chicago-based TVO Realty has a ninth property under contract in nearby Lake Jackson, TX, and a tenth still sitting in its portfolio. TVO has attempted to offset its property sales with acquisitions in Houston, M. Todd Marix, SVP with the Houston office of CB Richard Ellis tells GlobeSt.com, but as yet has not acquired a multifamily property. Marix expects, however, that the firm will buy other properties in Houston in the future.
Marix, along with G. Craig LaFollette and J. Todd Stewart, also SVPs with CBRE's Houston office negotiated the transaction for both sides. Marix says Stancliff Park, which is at 10350 Lands End Dr., was on the market for about 30 days and received 14 offers before being nabbed by CNC. The sales price was not disclosed, but the asking price was $16.5 million. The deal was closed about 45 days later, adds Marix, with new financing from Column Financial. Ken Lawrence with Lawrence Mortgage of Houston arranged the loan. Details of the financing were not disclosed.
Stancliff Park is a stand-out property, says Marix, because with occupancies at 93% and average rents at 79 cents psf, the class B complex has a strong performance record in a softening market.
"That is a rare thing," says Marix. He believes the complex's strong performance can be tied to its proximity to two Houston ISD schools. Tenants like the fact that their children can walk to school, he says.
According to the Harris County Appraisal District, the complex was constructed in 1983, is situated on 13.9 acres and has an assessed value of $11 million. Units average 804 sf. Marix says he believes CNC will likely put some money into the complex, but didn't give a number and adds that the property is in good condition already. He believes CNC views the asset as a long-term hold. The property will join CNC's existing multifamily portfolio, which consists of about 40 properties in the greater Houston area.
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