JMG Realty's Big Med Center Play
Entities owned by JMG Realty purchased a three-property portfolio of Class-A multifamily communities near the Med Center. HFF senior managing directors Todd Marix (who repped seller LeCesse Development with fellow senior managing director Todd Stewart and directors Chris Curry and Tre Banks) tells us any multifamily portfolio sale here is fairly unique, especially one with three properties contiguous to each other. (Not to mention in the Med Center—Todd likes to say that Houston isn’t a 24-hour city, but the TMC is. You can go there if you have insomnia because it's always open, and they might be able to cure your insomnia). Add in a value-add angle, and investors couldn’t resist—Todd’s team did 30 tours.
The three communities are El Mundo Park, Plaza Del Oro, and San Marin. They total 470 units and are 96% leased overall. Todd says they were originally developed by Sueba, which means they have great bones of brick and stucco. (Great bones for a building, if you have stucco in your body please go to TMC. See above.) But JMG has some ambitious renovations planned to close the gap between these communities and new product. JMG was able to lock in attractive financing through a Fannie Mae floating-rate LIBOR-based program with a low-rate I/O period.