"This was just good timing on the seller's part because the mixed-use development next door is starting to blossom," says David Mitchell, principal in Houston for Apartment Realty Advisors. He says the growth of the adjacent 50-acre Kings Harbor Waterfront Village added value to the 95%-leased asset at 4630 Magnolia Cove Dr. for the sellers, Midway Development Co. and Chancellor Properties.

Kings Harbor Waterfront Village is a Midway Cos. development consisting of residential, retail and office product. The development has attracted restaurants including Zammittis, Wine Loft, Chimichirri's and Como se Dice.

"Once that mixed-use development next door is finalized, the value of the property will be that much higher," explains Mitchell, who teamed with ARA principal Matthew Rotan.