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HOUSTON-Creekstone Partners LLC, partnering with US Advisors LLC, rushes to close the $48-million acquisition of the 312-unit San Brisas in an off-market transaction with locally based Sueba USA Corp.. The two-year Energy Corridor holding was 93% leased at sale time.
"Creekstone Partners hasn't focused on the Houston market, but the San Brisas property was attractive to us because of the superior construction by Sueba and because of its location in the Energy Corridor," Michael Preston, president of Creekstone Partners, says about the 2020 Eldridge Pkwy. pick-up. "This submarket is a high-growth area of Houston that targets a population perfectly suited to the types of properties in our portfolio."
David Wylie, an investment broker with Apartment Realty Advisors' local office, tells GlobeSt.com that the San Brisas deal surfaced when he and David Oelfke were selling two other deals for Sueba. "We learned that they would entertain offers on San Brisas so we brought in Creekstone," Wylie says.
Though Wylie's not talking about the price, a local industry expert estimates Creekstone Partners paid close to $48 million for the asset. "I think it traded at the highest per unit price ever paid in the suburbs," the expert tells GlobeSt.com.
Creekstone Partners secured $43.6 million in debt financing to acquire the 20-acre development. The Pittsburgh-based PNC Real Estate Finance provided a senior mortgage and RAIT Investment Trust of Philadelphia provided a mezzanine piece, according to Frank Satterfield, founder and principal of locally based Harbor Capital Group.
The complex features attached garages and high-end finishes like granite countertops, cherry custom cabinets, nine-foot ceilings, stainless steel appliances and Berber carpet. The complex also boasts high-demand amenities like a putting green, oasis pool and water park.
"This complex is top of the line from head to toe," Wylie says. "Sueba properties are considered to among the best buildings because of the quality construction. This is the nicest suburban deal in Houston in an A++ location."
University of Houston economist Barton Smith predicts the city's growth patterns will put the complex at the city's center by 2010. San Brisas' rents are drawing $1,050 to $2,499 per month for units ranging from 886 sf to 2,730 sf. The mix consists of 62 one-, 148 two- and 102 three-bedroom units.
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