HOUSTON-CBRE Global Investors Fund, CBRE Strategic Partners US Value 6, recently acquired the 352-unit Connection at Buffalo Pointe from developer Embrey Partners. According to a broker uninvolved with the transaction, the SoCal buyer acquired a decent deal just south of the Medical Center submarket.
Ed Cummins, senior vice president with Transwestern, tells GlobeSt.com that the property at 10201 Buffalo Speedway is south of Houston's CBD. "The Medical Center is the large employer there," he says. Furthermore, the area has a light rail station. "That's what's driving that location and market," Cummins says.
The complex also benefits from being close to Reliant Stadium and is in the 255-acre Buffalo Pointe master-planned community. As such, "it could be considered infill, or an area just outside of infill," Cummins says. "It's an affordable alternative to the more expensive, core medical center infill properties."
That was Embrey Partners' purpose when it built the complex, which came online in 2012. Connection at Buffalo Pointe was geared toward the support employees serving the Medical Center. Apparently it's doing fairly well – the complex was 94% occupied at time of closing.
Cummins acknowledges he doesn't know CBRE Strategic Partners' strategy in acquiring the asset, but believes the going yield is pretty good, especially for new construction and that there's some good upside. "They probably think rents will continue to increase throughout Houston, particularly in that market," he adds.
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