(To read more on the multifamily market, click here.)
KATY, TX-A developer from Columbus, GA has paid close to $30 million in cash for a neighboring property, the 430-unit Kingston Villas. The five-year-old complex was 92% leased at sale time.
Flournoy Properties was one of 10 bidders who surfaced during a 45-day marketing for the 21540 Provincial Blvd. complex, Ed Cummins, a senior investment adviser for Hendricks & Partners in Houston, tells GlobeSt.com. The asset was listed at $30 million, but traded for slightly less, he says.
Kingston Villas was sold by Kingston Villas Ltd., an affiliate of TRex Capital of New York City. The firm took possession of the complex just over a year ago from Houston-based NBC Holdings after it acquired the B-piece debt, Cummins says. NBC Holdings reportedly paid $30 million for the property.
"This is a market play for Flournoy," Cummins explains. "They can buy at a reasonable return now and as concessions wane in the market, they can enjoy an increase in operating cash flow." He adds the asset, which abuts Flournoy's 369-unit Vineyards, traded for well below the replacement cost.
The 92%-leased Kingston Villas consists of 29 two-story, garden-style buildings and a 5,340 sf clubhouse and business office on 30.5 acres. It is a mix of 210 one-bedroom units, 196 two-bedroom apartments and 24 three-bedroom designs. Units go from 692 sf to 1,413 sf, with rents ranging from $685 to $1,350 per month.
According to Cummins, Flournoy Properties paid cash and proceeds from a condo project in Atlanta to acquire Kingston Villas. Jim Hearn, also with Hendricks & Partners' Houston office, partnered on the sale.
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