Sterling Systems Inc. of Houston used 1031 Exchange funds from another multifamily sale in Houston and assumed a loan to take control of the 7610 Fallbrook Dr. property. Brokers on both sides of the deal declined to discuss details of the loan assumption. MBS Cos. of Metairie, LA is the seller.

Robert Su with the Houston office of Marcus & Millichap tells GlobeSt.com that Sterling Systems, eyeing a long-term hold, will invest about $25,000 into minor upgrades at the class B property. The 94%-occupied complex, situated on 5.2 acres near the intersection of Texas 249 and Sam Houston Tollway, has units that average 725 sf and a $500 per month median rent.

The seller is in the midst of selling class B, 1980s-era product and replacing the stock with class A properties built in the late 1990s or newer, says David Wylie with Apartment Realty Advisors in Houston. He and Cliff McDaniel, also with the multifamily brokerage firm, have been steering a nine-property disposition for MBS Cos., which owns about 15,000 units nationwide. Cedar Pointe, the third MBS asset to sell, was on the market about 30 days and garnered 15 offers.