Transaction manager Kelly Witherspoon with Apartment Realty Advisors' secondary markets team in Austin, TX says the Pleasanton, CA-based seller wanted to keep the portfolio's marketing efforts on the QT. As a result, Witherspoon and Apartment Realty Advisor vice president Jeff Patterson, also with the secondary markets team, approached only a handful of investors they felt would be interested.
"The investor in Abilene responded immediately," Witherspoon says. "I think he saw opportunity and significant upside in these deals. This investor has had previous success in repositioning distressed properties." Though Witherspoon declined to mention sales figures, comps put trading of comparable class B and class C properties in the mid-$20,000s to low $30,000s per unit.
One upside involves the portfolio's age. The assets were constructed in the 1970s and 1980s, and the new owner will likely invest between $5,000 and $8,000 per unit. Some of the properties need a little more attention than others, Witherspoon says.
"It'll be a sizeable rehab, with name changes and quite a bit of interior and exterior work," Witherspoon tells GlobeSt.com. "These won't look like the same properties in the next three to six months."
Then there is the fact that the 219-unit University Park Apartments along Vanderventer Street serves Angelo State University. "These apartments are right across the street from the university," Witherspoon comments. "The buyer's plans are to scrub the tenant mix and reposition these properties so they're attractive to students." The University Park Apartments complex includes the 79-unit Adobe Towers at 1821 S. Jackson St., the 46-unit Casa at 1810 S. Fillmore St.; the 54-unit Ram's Crossing at 1818 S. Lincoln St.; the 16-unit Thunderbird at 1817 S. Pierce St. and 24-unit University Park at 1822 S. Van Buren St.
Witherspoon says the three remaining complexes are in other parts of the city. These are the 136-unit Sweetbriar Apartments at 3508 Sweetbriar Dr.; the 120-unit Windmill Apartments at 1929 Raney St. and the 128-unit Villa Apartments at 3302 N. Bryant Blvd.
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