(To read more on the multifamily market, click here.)
HOUSTON-One of the premier apartment developments in the Galleria, the 351-unit Lofts on Post Oak, has sold to well-known condo converter, New York City-based Tarragon Corp. The eight-story tower and four-story mid-rise building sold for $77 million, according to industry experts.
"This is a huge price," one expert tells GlobeSt.com, adding that the 5.2-acre development at 1901 Post Oak Blvd. is perfect for condo conversion because of its high-end, luxury finishes and large units. Local developer Hanover Co. wrapped up work on the Lofts on Post Oak in January. It's now 95% leased.
"We received more than 15 offers," David Wylie, an investment broker in Houston for Apartment Realty Advisors, tells GlobeSt.com. He says about the prospective buyers were practically evenly split between condo converters and traditional apartment operators.
Leasing has ceased so the conversion process can swing into action. An industry expert predicts the units will be selling for $328 per sf to $350 per sf. The 66-unit tower has 22 one-bedroom units, ranging from 766 sf to 1,432 sf, and 44 two-bedroom apartments with 1,481 sf to 3,138 sf. The mid-rise building has 285 units, of which 231 are one-bedroom designs with 685 sf to 1,286 sf and. The two-bedroom units range from 1,202 sf to 1,590 sf. Monthly rents go from $1,159 to $5,799.
The Lofts on Post Oak is just one of several condo projects in the Galleria area. The 112-unit Montebello at 1100 Uptown Park Blvd. is 80% sold out and the 100-unit Villa d'Este at 1000 Uptown Park Blvd. is gone, according to the local source.
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