"My gut feeling is that the portfolio will sell in pools or pieces," Todd Marix, an SVP with CB Richard Ellis Inc.'s local office, tells GlobeSt.com. "If you asked me to wager on it, I don't think it would trade all in one piece. But, with all the capital available, I wouldn't say that the possibility doesn't exist." The CBRE marketing team includes VPs Craig LaFollette and Todd Stewart and associate Tre Banks.
The properties, ranging from 48 units to 316 units, are a mix of class A, B and C. "There's really something for everyone," Marix says. "Some of the properties are value-added opportunities that need some work while some of them are just good, stable assets." The majority of properties are concentrated in the southwest suburbs, several are clustered, Marix says. The West Airport submarket and City of Pasadena each have three properties while Bissonnet Street has four properties.
The complexes, built between 1970 and 1999, have rents ranging from 57 cents per sf to 92 cents per sf. The portfolio is about 90% occupied.
The only class A properties are the 316-unit Greenwood Forest and 240-unit Enclave at Mary's Creek. The other properties, Marix tells GlobeSt.com, are not institutional quality nor are they located within the Inner Loop. He predicts few REITs or institutional investors will be interested in the portfolio, but believes some smaller properties will be attractive to 1031 exchange buyers. The larger assets, he says, will attract more traditional buyers.
Several properties have assumable loans. "This is not a situation where the loans will hinder the value," Marix stresses, "rather I expect them to boost it."
According to Marix, Lanier and Landar Corp. have owned some properties as long as 10 years. Marix says the portfolio has come to market because the mayor, who's getting ready to celebrate his 80th birthday, has started to do some estate planning.
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