The new owner of 4100 Greenbriar St. assumed a $7.2-million Fannie Mae loan with a sub-6% interest rate through Boston-based Berkshire Mortgage Finance to close the deal, James Hearn, partner in Houston for Phoenix-based Hendricks & Partners, tells GlobeSt.com. The seller, Allied Greenbriar Ltd. of Houston, is an investment group with an equity fund as a partner.
Hearn says Greenbriar Chateau garnered 10 offers when it first came to market, but it took a year to sell because two contracts fell out due to last year's downturn in the multifamily sector. To win the close, he says "the price was lowered just a shade" for buyer of record, FSC Greenbriar Chateau Ltd.
Hearn says the 35-year-old complex is a class B asset in a class A neighborhood on the border of the affluent West University submarket and within miles of Rice University. The seller acquired the 3.6-acre property in the early 1990s and completed a renovation a few years ago. According to Hearn, it was simply time for the equity fund to get out of the asset.
The complex has a historical occupancy of 94% although it was resting at 89% at sale time. Units average 834 sf and rent is $820 per month or about $1 per sf. Hearn says the buyer, a known long-term holder, plans to complete minor upgrades, including work on the elevator system of the three-story complex.
Houston's pricing for multifamily product is the magnet for out-of-state investors. "Capital dollars are free-flowing in places where prices are still reasonable," Hearn says of the picked-up pace in the volume of transactions.
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