3 Property, 962 Unit MF Portfolio– Investment Sale

Properties: Timbers, Monticello and Pecan Square Village

Project: Our client hired Jerad Rector of Worldwide Commercial, PLLC (“WWC”) to market and sell their 3 Property, 998-Unit Multi-Family portfolio located a mile west of I-45 and just north of the North Houston District of Houston, Texas. The properties made up the largest portfolio traded in this submarket in the last several years and were a mid-term hold investment for our client who had completed some interior improvements and exterior paint on all 3 assets. This portfolio gave the buyer the opportunity to acquire 3 assets of approximately 1000 units, all on the same street and plenty of value add to be achieved.

Process: Through our marketing of the portfolio, we registered about 350 investors and representatives from across the United States, Canada, Europe, Russia and Asia to our deal room and engaged each of them in discussions about the properties. While marketing the portfolio, there were multiple fires on the properties in addition to damage caused by Hurricane Harvey which resulted in dramatic decreases in occupancy, yet we were still able to create and manage a high volume of activity and property tours and ultimately garnering dozens of offers. In the end, we secured one of the most active local buyers with one day of due diligence and closed the sale at one of the highest prices per door this submarket has seen recently.

Result: We sold the portfolio for more than a comparable property which had better floor plans even though the occupancy across the portfolio slipped to approximately 67% at the time of the sale. The decline in occupancy similarly affected the NOI yet we were still able to get the sale closed at $2,500/unit more than the comparable property.

Value Add – $9,438,637

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