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BofA Buys 200 Apartments in Northwest Houston

HOUSTON-The BofA Community Development Corp. will complete $2 million in renovations to Lexington Trails to make it competitive with its neighbors. The Northwest Houston property, once affordable housing, was bought from Charter Mac.

By Jennifer Brenner Andrade | Updated on March 01, 2004

HOUSTON-Bank of America Community Development Corp. has purchased a one-time affordable housing development, the 200-unit Lexington Trails, from the New York City-based Charter Mac. The Northwest Houston asset was on the market three months for $5.7 million.

The Charlotte, NC-headquartered bank plans to sink about $2 million into renovating the class B complex so it can compete with its market-rate neighbors, David Fournier, a director in the local office for Holliday Fenoglio Fowler LP, tells GlobeSt.com. “Lexington Trails is a value-add rehabilitation opportunity with current rents below the potential market rent and a below-market occupancy,” he says in a press release about the 6300 W. Tidwell Rd. property. Though tight-lipped about occupancy, he did say Lexington Trails’ current rents are 8% below the submarket average of $650 per month. He and HFF director Bill Miller rounded up five offers for the Charter Mac sale.

Fournier says Lexington Trails had affordable housing restrictions, but they were lifted so it could be tagged at market rate once the renovation is done. The makeover plan will take about six months to complete. The immediate neighborhood has several multifamily properties undergoing renovation. The submarket’s average occupancy is 90%.

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