COLLEGE STATION, TX-SoCal buyer Interwest Capital Corp. has added to its Texas portfolio with the recent buy of the 904-bed Woodlands of College Station. The class A student housing complex serves Texas A&M University.
According to the Brazos Central Appraisal District, the seller was a limited partnership based in Athens, GA. The appraisal district assesses the complex at $33.8 million.
The good news when it came to the student housing property at 1725 Harvey Mitchell Pkwy. is that it's close to 100% occupied and "pre-leasing for the upcoming 2013-2014 academic year has been incredibly strong," comments Interwest investment analyst Justin Shifrin.
Shifrin and Interwest vice president of acquisitions Scott Wittman tell GlobeSt.com that, from a strategic standpoint, the buy has enabled Interwest to continue its growth both in the student housing sector and in Texas, where it already owns three other multifamily properties. " Interwest has established a long history of identifying and underwriting complex and convoluted assets in growth-oriented markets," Wittman notes. One of the markets is Texas, and Woodlands of College Station is the company's fifth buy in the Lone Star State.
"Complex" describes the challenges in acquiring this asset. Shifrin explains that buying Woodlands of College Station had a complex governance and organizational structure. "A total of 557 units were originally constructed, with a portion of the project dedicated as for-sale condominiums and the remainder as rental apartments," he says. Because of this structure, Shifrin says getting the legal documentation and financial assessments for the common areas and privately owned units was challenging.
Now that Interwest has closed on the five-year-old property, the next step is to complete furnishing the remaining units (half of the units as of now are leased on a furnished basis). Shifrin adds that common area upgrades are also planned.
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