COLLEGE STATION, TX-A joint venture comprised of Pensam Capital and BH Management has acquired Briarwood Apartments, a 422-unit, class B multifamily property, from Aspen Square Management. The 1970s-era community traded at an 8% cap rate, according to Michael Stein, principal at Pensam.
Although Des Moines-based BH Management owns and manages several apartment properties throughout Texas, Briarwood Apartments marks Pensam’s first acquisition in Texas. In addition to Briarwood Apartments, the Miami-based firm owns properties throughout Florida and in the Chicago metro area.
Stein tells GlobeSt.com that BH Management has owned an apartment community adjacent to Briarwood Apartments for roughly 15 years. The property, Plantation Oaks, has been a strong investment for the company, he adds.
“Occupancy has been high at Plantation Oaks, BH has seen very little in the way of collection loss and they seem to be growing rents,” Stein notes. “The property is contiguous to our property, and we felt we had some efficiencies in management.”
Situated on 19 acres, Briarwood Apartments primarily houses students who attend the nearby Texas A&M University. However, the property is a conventional multifamily property and does not lease by the bed, Stein explains. Currently, the property is 98% leased to a mix of roughly 80% students and 20% university employees.
“We think the fundamentals will always be good in a market like College Station because of the huge engine of Texas A&M,” Stein says. The JV plans to renovate the property, investing less than $1 million to upgrade unit interiors, landscaping, pool area and fitness center.
Aspen Square Management tapped Charles Cirar in CBRE’s Austin office to market Briarwood Apartments. Pensam closed the transaction and arranged financing for 80% of the acquisition price within 70 days. The firm plans to acquire additional value-add assets in growth submarkets throughout the country, Stein adds.
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