"The buyers likes Houston very much--they feel it's an opportunity-buy market," says Ed Cummins, a partner with the Houston office of Hendricks & Partners who represented Freemont-Parklane in the transaction. Jim Hearn and Greg Austin of Hendricks & Partners represented the seller.
"This is a value-added play," Cummins tells GlobeSt.com, adding that the complex will undergo $250,000 to $300,000 of exterior renovations and will receive new management. "The buyers believe that they can increase occupancy and rents with a more hands-on management," he says.
Situated on 13 acres at 5555 & 5714 West Gulfbank Rd., Park Lane I & II units are restricted to 60% of the county median income until 2007. The median income for Harris County is $59,100.
Park Lane provides residents with eight floor plan options. The one-bedroom units range from 520 sf to 720 sf and the two-bedroom units range from 884 sf to 1,107 sf. Current rents on these units range from $419 to $550. Park Lane I, built in 1981, consists of 98units, including 68 one-bedroom units and 30 two-bedroom units. Park Lane II, built in 1982, consists of 212 units including 164 one-bedroom units and 48 two-bedroom units. The complex is 88% leased.
According to Cummins, Freemont-Parklane is actively searching for more multifamily assets in Houston. Earlier this year, it purchased Brookdale Village Apartments at 6113 Gulf Fwy.
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