289-Unit Metropole Comes to Market

HOUSTON-Less than two months after acquiring a note and foreclosing on Metropole Apartments, Lynd Residential Properties is putting the class A-plus, 289-unit complex on the market. The San Antonio-based Lynd Residential and partner McCombs Enterprises closed on the $32 million note in December and believe the asset could trade for upwards of $40 million.

Apartment Realty Advisor principal David Mitchell, who is marketing Metropole Apartments, says Lynd Residential acquired an asset that wasn’t stabilized, but the company is working on lease-up. Metropole, at 3616 Richmond Ave. has an occupancy in the low 80s, up from 75% in December 2009. He tells GlobeSt.com that the property should be fully stabilized by April. The call for offers on Metropole Apartments is set for March 25.

Upon stabilization, the complex will still offer a lot of upside. For one thing, Mitchell points out, there’s been no new supply coming onto the market, and none anticipated during the next three or four years.