HOUSTON-Mosaic Residential has kicked off 2011 with the acquisition of three multifamily properties totaling 660 units. The three properties, all located in the Houston metro area, carried a price tag of roughly $25 million.
“We expect to continue to locate several REO assets that we can take down all cash, as well as class B deals that fit our business model,” says Abe Bhimani, partner with Mosaic Residential. “In addition to these three deals, we’re about to put a property under contract in San Antonio.”
Mosaic Residential’s recently acquired properties are: Wellington Place Apartments, a 136-unit, class B property; Mediterra at Westchase, a 312-unit, class C property; and Green Tree Place Apartments, a 212-unit, class B property.
“All three properties fit our business model,” Bhimani tells GlobeSt.com. “They’re located in markets with strong school districts and high median household incomes. There’s also market evidence that renovations with lead to rent pops for the properties.”
Bhimani says the new acquisition increase Mosaic Residential’s by 17%. The local owner now owns 19 properties totaling 3,829 units. All of the firm’s apartment assets are located in Texas.
Mosaic Residential acquired Wellington Place Apartments out of foreclosure from Dallas-based special servicer C3. The 1980s-era property, located at 10803 Green Creek Dr., was marketed by Matt Phillips with Tarantino Properties Inc.
The firm partnered with Khaled P. Salem, a local equity investor to take down the deal on an all-cash basis. It will spend about $6,000 per unit to upgrade the property including an extensive exterior renovation. The new owner has also renamed the property to Pebble Creek Apartments.
As part of its acquisition of Mediterra, Mosaic Residential went through a nine-month long loan assumption process that involved NorthMarq Capital, Midland Loan Services and Key Bank. “We put the deal under contract the first week it was on the market, but it took several months to close the deal because we had to assume the loan,” Bhimani says.
Jeffrey Fripp in Marcus & Millichap’s local office marketed Mediterra, which is located at 3131 Hayes Rd. Mosaic Residential partnered with Eastham Capital of Newton, MA, to acquire the property from Alterra Capital, which is exiting the Houston market.
Mosaic Residential also partnered with Eastham Capital to acquire Green Tree Place Apartments, closing the deal on an all-cash basis. The partnership bought the 1980s-era property from Concierge Asset Management, which has been an active buyer with its own partner, Crossbeam Capital.
Located at 4211 Clay Hill Dr., Green Tree Place Apartments was listed by HFF’s local office. Mosaic Residential will invest $4,000 per door to update unit interiors, Bhimani says.
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