HOUSTON-Allen Harrison Company LLC expects to close $70 million worth of apartment acquisitions this year, according Will Harper, one of the firm’s partners.
The company, which launched in January 2010, is actively executing its strategy to acquire value-added apartment communities throughout Texas. Harper, a former Hanover Company executive, partnered with Paul Forbes, another Hanover executive, to build Allen Harrison Company.
“We felt we were in the midst of a very rare opportunity to acquire real estate,” Harper explains. “We felt we were going to get five years down the road and say that 2010 to 2012 were very obvious times in the cycle to acquire apartments. And, we felt like we could leverage relationships and expertise.”
Last fall, Allen Harrison closed on its first three apartment investments. So far this year, it has acquired three apartment complexes totaling $30 million – all in Houston area.
The properties include: Chalfonte, an 86-unit property in West Houston; Villages at Meyerland, a 714-unit property near the prestigious in Bellaire; and Applewood Village, a 92-unit property in Spring, also closed in late May. The addition of these three properties brings the Allen Harrison portfolio to 1,397 units.
All three transactions were brokered by David Wylie, Russell Jones, Zach Springer and Cliff McDaniel of Apartment Realty Advisors’ local office. Allen Harrison’s affiliated construction firm, AHC Construction, will handle more than $6 million of extensive renovations across all three properties.
Currently, Allen Harrison has three properties totaling $25 million under LOI, Harper tells GlobeSt.com, adding that another former Hanover employee, Caitlin Weidig, spearheads the firm’s acquisition efforts. The three assets under LOI will allow the firm to enter the Austin and Dallas markets.
In addition to the three Houston acquisitions and the three properties under LOI, Harper says Allen Harrison plans to buy two more apartment assets totaling $15 million before the year is over. “We look at a lot of deals – we have offers out on 6,000 units at any given time,” he notes, adding that the firm raises equity from family offices and high-net worth individuals and places debt on all deals.
In fact, five of its six closed deals have assumable CMBS debt. “Because we were patient, we ended up picking deals that other people dropped,” Harper notes. The company sources its deals primarily from the brokerage community (all six acquisitions were widely marketed).
The entire Allen Harrison portfolio is managed by Mosaic Residential Inc., a local property management and investment firm.
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