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10 Multifamily Bidders Push Ante to $8M

HOUSTON-The Lynd Cos. and GE Capital put the high offer on the table for the 174-unit Boardwalk apartments at 9100 Fondren Rd. The partnership assumes a $5.9-million loan and floats a second mortgage to win a holding with a cap rate exceeding 8%.

By Jennifer Brenner Andrade | Updated on May 19, 2004

HOUSTON-A San Antonio-based buyer, with GE Capital as a partner, has spent almost $8 million for the 174-unit Boardwalk apartments in Houston’s southwest submarket. The sale has closed at a cap rate north of 8%.

The Lynd Co.-GE Capital partnership assumed a $5.9-million Fannie Mae loan and rolled in a second mortgage to close the deal, Jim Hearn in the Houston office of Phoenix-based Hendricks & Partners tells GlobeSt.com. The buyer of record, GEL Boardwalk LP, outbid 10 other investors lining up for the class B asset at 9100 Fondren Rd.

Hearn says the “north of 8%” cap rate helped the buyer clear “its return hurdles” in the acquisition from Boardwalk Houston Investors, a general partnership with Dallas-headquartered Meridian Realty Advisors Inc. as principal. Hearn, who sold Meridian’s other property awhile ago, says the turnaround pro for out-of-favor or liquidity-challenged assets simply decided the time was right to exit Houston.

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