HOUSTON-CONTI Organization has purchased two distressed multifamily properties here, bringing its annual investment activity to three acquisitions totaling about $11 million. The two class C properties, which offer 656 units, were acquired out of foreclosure from Dallas-based special servicer C3.
The 320-unit Riverbank Apartments and the 336-unit Wood Forest Glen represent CONTI’s 12th and 13th acquisitions since its inception in 2008. They bring the Dallas-based owner’s portfolio to 2,780 units.
CONTI has renamed both properties and is spending $4.4 million to upgrade the 1980s-era properties, according to Carlos Vaz, president and founder of CONTI. “Because of the foreclosure, both properties saw their occupancy fall dramatically,” he tells GlobeSt.com. “We have a strong record of cleaning up properties and leasing them, and we think we’ll be able to do the same with these two properties within the next 12 to 18 months.”
Riverbank Apartments, now Casa Miranda Apartments, is located in Southwest Houston submarket. Purchased through Apartment Realty Advisors, the property was acquired in partnership with Austin-based Scenic Capital Advisors and JMI Construction of San Antonio.
Once CONTI finishes the $2.7 million renovation, the property will be a C+ asset, Vaz says. At the time of purchase, Casa Miranda was 36% occupied.
Wood Forest Glen has been renamed Villa Sierra Apartments. Located at 550 Normandy St., the property consists of 27 buildings located on 10.8 acres. The occupancy was 70 percent at takeover. Tom Wilkinson with KET Enterprises brokered the sale for the seller.
Villa Sierra will go through CONTI's standard rehab program including new roofs, landscaping, exterior carpentry and chimney repairs, fence repair and enhancements, fully remodeled leasing office and interior unit upgrades. The $2 million rehabilitation is planned to be 90% completed by February 2011, bringing the class C property to a class B-, Vaz says.
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