HOUSTON-Mosaic Residential has acquired a 300-unit distressed apartment community in the Champions Forest area of North Houston. The local company partnered with Boston-based Eastham Capital and local real estate investor Khaled Salem to buy Copper Creek Apartments, a REO-owned property.
Mosaic Residential declined to disclose the purchase price. However, GlobeSt.com was able to obtain the property’s list price: $17,666 per unit for a total of $5.3 million. The seller was special servicer, CW Capital Asset Management LLC. The previous owner was CNC Investments of Houston.
Located at 14222 Wunderlich, Copper Creek Apartments is sandwiched between two performing B class properties in a good location, according to Abe Bhimani, a partner with Mosaic Residential. “Any investor who looks at this deal sees the potential,” he tells GlobeSt.com. “The two other properties have occupancy rates in the 90s, and this property is in the 60s.”
Bhimani says Mosaic Residential plans to renovate the property’s exteriors, as well as its interior, investing $5,000 to $10,000 per unit. “We plan to bring the property to a higher level than the two neighboring properties to enable us to get a little more pop in the rents,” he explains, adding that the firm also hopes to increase occupancy and improve the tenant profile.
As part of the makeover, Mosaic Residential also plans to change the property’s name to The Cottages of Champions Forest.
The property was brokered by Bishale Patel and Jim Hurd of Houston Income Properties. Mosaic Residential obtained adjustable-rate financing from Amegy Bank of Texas.
With the Copper Creek Apartments acquisition, Mosaic Residential now owns more than 4,000 units, all located in Texas. Earlier this year, it purchased three multifamily properties totaling 660 units. The three properties, all located in the Houston metro area, carried a price tag of roughly $25 million.
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