(To read more on the multifamily market, click here.)
HOUSTON-As part of its ongoing strategy to sell off class B assets and invest in higher quality communities, AMLI Residential Properties LP has acquired the Quarters at Memorial, a 380-unit complex west of the downtown. Industry experts familiar with the deal say the REIT paid $51 million or $135,000 per unit.
The three-year-old development at 3003 Memorial Dr., assessed at $34.2 million by Harris County, has been renamed AMLI Memorial Heights. The seller was McCaslin Memorial I Limited Ltd., an affiliate of locally based McCaslin Development Co. Chicago-based AMLI was one of eight would-be buyers, according to Craig LaFollette, senior vice president with CB Richard Ellis Inc.'s local office. LaFollette partnered with J. Todd Stewart and Todd Marix to broker the deal.
LaFollette tells GlobeSt.com that only one condo converter made a play for the 95%-leased complex, which boasts large units and downtown views. "The property is perfect for condos, but at 380 units, the market for that many condos is just not there yet," he explains.
AMLI financed the acquisition with proceeds from the sale of AMLI at Poplar Creek, a 196-unit, class B complex at 1900 Windsong Dr. in Schaumburg, and assuming a $35.7-million loan that matures in April 2011, according to a press release. The Bank of America loan has a fixed-rate interest of 4.9%.
The 24-building AMLI Memorial Heights sits on 10 acres. It boasts a mix of 104 one-bedroom units; 132 two-bedroom apartments; 16 three-bedroom designs; 72 one-bedroom lofts; and 56 two- and three-bedroom townhomes. The average unit is 1,195 sf; the average monthly rent is $1,549.
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