Aimco Sells 488 Units to California Firm

SAN ANTONIO-Aimco, a Denver-based REIT has sold two class B multifamily developments here to Irvine, CA-based Real Estate Partners for $16.7 million. The properties, Stone Hollow and Shallow Creek, are situated between Southwest Texas Methodist Hospital and Interstate 10 in the northwest section of the city. Stone Hollow, acquired for $9.7 million, is a 280-unit apartment community on 9.9 acres at 9400 Fredericksburg Rd. The development includes 36 two-story buildings constructed in 1974. Te buildings contain one- and two-bedroom units ranging in size from 500- to 1,000 sf. Shallow Creek, acquired for $7 million, is a 208-unit apartment community on 7 acres at 3601 Magic Dr. It was built in 1982 and contains one-, two- and three-bedroom units ranging in size from 525- to 1,253 sf. Real Estate Partners president Tom Thompson was not immediately available Friday morning for comment. In a prepared statement, the company says it will invest an additional $1 million in each of the properties. Renovations will include new countertops, appliances, fixtures, lighting, paint and carpet to match the interior quality of neighboring Class A apartment communities. Exterior renovations include improving the leasing office, pools, landscaping, common areas, roofs and signage. Acquisition financing was provided through Key Bank.Real Estate Partners CEO Dawson Davenport states that the purchase provides the company an opportunity to capitalize on the rising apartment market here while also increasing its economies of scale since it already owns existing product elsewhere in the city. “Once the properties are renovated, they will be held for investment for the foreseeable future, most likely in a newly formed tenant-in-common investment structure that we are currently investigating…,” says Davenport in a prepared statement. Shallow Creek and Stone Hollow are located in what is known as the Southwest Medical Center District. Earlier this month, GlobeSt.com reported that Trademark Property Co. of Fort Worth, typically a shopping mall owner and developer, is venturing into the multifamily arena with a new development in the same submarket in partnership with Godfrey Residential Group of Bryan, TX. The pair plans to break ground here in the next couple of months for the Melograno, a 248-unit complex on 12 acres at Hamilton Wolfe Road and Acorn Ridge Road. Trademark’s senior vice president of acquisition and asset management Jeff Allen tells GlobeSt.com that the area is considered one of the strongest submarkets for class A apartment communities in the metro area. The submarket has an average occupancy of about 94%, fewer concessions than other markets and rents right around $1 per sf.”What we like about the location is it is really an infill location; there is only one other multifamily-zoned tract available,” says Allen. That tract, located at I-10 and Heubner Road, is owned by San Antonio-based USAA Real Estate Company.