Multifamily Monday: Southwest Multifamily Partners Buys Four in Hot Areas
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Southwest Multifamily Partners, a commingled fund led by CityView and Lincoln Property, purchased a four-property multifamily portfolio, taking advantage of a rare opportunity to buy high-quality product in two of Houston’s top locations.
HFF director Chris Curry and senior managing directors Todd Marix and Todd Stewart repped the seller of the four properties, which total 900 units: Mirage, Parque Del Oro, San Melia and Versailles Park. They’re all A-minus and B-plus product built from ’84 to ’03, Todd Marix tells us. (That's a respectable 3.5 GPA for anyone wondering if these buildings are looking to go to college.) The big draw, though, was the location. All the properties are in either the Med Center or the Galleria, and Todd says it’s rare to find this quality of asset available in those top-tier submarkets. The listing grabbed a lot of investor attention; the HFF team did more than 20 tours and got around a dozen offers.
The properties are 95% leased overall, and Lincoln Property will manage them. Southwest Multifamily Partners will pump some capital into the communities to bring them more in line with new product nearby. HFF senior managing director Andy Scott, executive managing director Jody Thornton and associate director Michael Cosby helped the JV get acquisition financing, arranging four separate transactions through Freddie Mac’s CME Program.
Next up for Todd’s team: They’re picking best and finals for The Lynn, one of the few Class-A deals in Baytown, and they’re taking initial offers for Memorial Towers (pictured). That high-rise was built in 1967, and Todd tells us it’s getting interest both as a value-add play and a land play. It sits on two acres at the corner of Memorial and Detering.