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AUSTIN-A Houston-based investment group has added to its multifamily portfolio, acquiring three class A-plus complexes with 1,272 units. Market sources say the buyer has paid close to $170 million for the "Mansion" portfolio.
CNC Investments Inc. has renamed the complexes to reflect its brand-name, Monterone. "He's actively seeking other deals, particularly in the Austin area," says Jim Richards, a principal with Houston-based Live Oak Capital Ltd. "Austin's a market that's in favor now. The fundamentals are good and job growth is good."
The loan arranger tells GlobeSt.com that the Mansion portfolio, with its average occupancy of 93%, was in excellent shape when sold by Western Rim Investment Advisory Inc. of Coppell, TX in a direct deal with CNC. "There's not a lot the owner needs to do with them," he adds.
The properties are the 583-unit Monterone Round Rock at 7711 O'Connor Dr. in Round Rock, and 502-unit Monterone Steiner Ranch at 4500 Steiner Ranch Blvd. and 332-unit Monterone Canyon Creek at 9009 N. Farm-to-Market 620, both in far north Austin. The complexes are a mix of one- to four-bedroom units, measuring from 711 sf to 2,339 sf. Monthly rents run from $750 to $2,340.
Richards arranged a five-year, interest-only loan through Column Financial's Dallas office. Richards says the sub-6% loan was short-term for flexibility.
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