The 3.7-million-sf, class B portfolio, which is about 82% occupied, is located within a mile radius encompassing Imperial Valley Drive, Greens Road and Hardy Road. The properties, built between 1977 and 1984, range from 881 units to 59 units.
"This is a serious value play because of the price per sf and the price per unit," says Matthew Rotan, principal of the local office of Apartment Realty Advisors, who is marketing the portfolio. "This is an opportunity for someone who believes that the Houston market is poised for growth."
Rotan tells GlobeSt.com that the Greenspoint submarket has improved since Irving, TX-based Archon and Goldman of New York City acquired the properties in 1997. "Compared to seven or eight years ago, this area has undergone a massive transformation over the past seven to eight years," he says.
The Greenspoint submarket, which is located near the George Bush Intercontinental Airport, is part of a tax increment reinvestment zone and will benefit from $250 million in improvements in the next 30 years. Several large employers, such as Exxon Corp., make up the employment base.
According to Rotan, few REITs will be interested in acquiring the portfolio due to its lack of geographic diversification. However, he anticipates many institutions and private investors will consider the properties as an opportunity play. "If you look at the fact that the properties have a lower occupancy than the market average and look at the price per pound, I think a lot of investors will feel good about it the opportunity," Rotan says.
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