KC Venture Borrows $17M to Buy 240-Unit Asset

CLEAR LAKE, TX-An active player in the market has snagged another asset, adding the 240-unit Palms at Clear Lake to its collection. KC Venture Group LLC is planning to increase the complex’s value by putting its own management in place.

The Harris Central Appraisal District assesses the complex at 1300 Gemini Ave. at $11.4 million. Comparable class A complexes have been trading for $20 million to $25 million. KC Venture Group LLC obtained a $17.2-million loan to buy the complex from Houston-based Morgan Group Inc.

“Palms is a newer asset and we bought it at a competitive price below replacement costs,” says Peter Engleman, acquisitions director for the Kansas City, MO-based buyer. “We liked the location and the seller built a great asset.”