HOUSTON-Armed with cash and promising a short due diligence and quick close, Invesco Real Estate has emerged as the winning bidder for Alexan Upper Kirby, a 230-unit, class A multi-housing community.
The Atlanta-based investor acquired the mid-rise property from Trammell Crow Residential for an undisclosed amount. Local sources say the community traded for $150,000 to $160,000 per unit, which translate into a sale price of $34.5 million to $36.8 million.
Located at 2300 Richmond Ave. in the city’s inner loop, Alexan Upper Kirby was on the market just 30 days. During that period, it received more than 20 offers, according to Craig LaFollette, a senior managing director with Holliday Fenoglio Fowler’s local office. He brokered the deal along with the HFF investment sales team of senior managing directors Todd Stewart and Todd Marix, director Tre Banks and associate director Chris Curry.
“Interest in Alexan Upper Kirby was off-the-charts,” LaFollette tells GlobeSt.com “The deal was down the middle of the fairway for a large number of investors.” He adds: Alexan Upper Kirby’s spectacular quality, superb location, and strong cash flows led to a feeding frenzy and very aggressive pursuit by some of the multi-housing industry’s most recognizable investors.”
Invesco made the highest bid, but its offer wasn’t out of line with other interested buyers, LaFollette says. “At the end of the day, they had the highest price, but they also offered a short due diligence and closing period and paid all cash,” he notes. “Both parties had done business with each other before, and Invesco was very excited about the asset--you could tell they really wanted it.”
LaFollette says investors were particularly attracted to Alexan Upper Kirby’s location in the affluent Upper Kirby neighborhood. Situated on 2.5 acres with two levels of podium parking, it is close Greenway Plaza, Highway 59, Rice University, The Texas Medical Center and the residential areas of West University and River Oaks.
Additionally, LaFollette says Alexan Upper Kirby offered superb quality, from the overall design and unit mix of the property to the finish in the common areas and the units. Completed in 2008, the property offers a mix of one- and two-bedroom units averaging 925 square feet. The property is 99% leased. Community amenities include a resort-style swimming pool, fitness center, billiards room and covered/gated parking.
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