Bidding Heated for 337-Unit Houston Complex

HOUSTON-CNC Investments, a local multifamily owner, ended up paying more than the $6.5-million asking price for the 337-unit, class C Park West complex at 8047 Grow Lane in Houston. In fact, the top four offers peaked above the asking price, GlobeSt.com is told.

More than 15 offers were received in the 30 days it was on the market, says Todd Marix, first vice president in Houston for CB Richard Ellis Inc. He’s not disclosing the final price, but the 26-year-old northwest Houston complex was marketed as a fixer-upper with upside potential by sellers, Chicago-based TVO Realty Partners.

Marix says CNC will perform an “extensive” renovation, inside and out. The end result most likely will be the realization of the upside potential in rents and occupancy. The 90%-occupied complex, which has an average unit size of 713 sf, earns about 70 cents per sf or $500 per month. Nearby renovated properties of the same caliber are bringing 72 cents to 76 cents per sf, Marix says.

The complex was part of a four-property package that TVO put on the market. The seller’s original game plan was to market the properties as a whole, but instead sold them individually. In recent months, TVO sold the 458-unit Forrester apartments at 12800 Woodforest Blvd. and 313-unit Regency Square apartments at 7222 Bellerive Dr. Marix confided the fourth property is under contract and set to close next month, but that’s all he’s saying until it’s done.

According to the TVO Realty Web site, it owns the 400-unit Stancliff Park at 10350 Lands End Dr. and 272-unit Williamstown at 9200 Bissonnet St. Seller and buyer were represented by Marix and G. Craig LaFollette and J. Todd Stewart, both senior vice presidents on the CBRE Houston multifamily team.