442-Unit Ashford Court Gets Local Owner

HOUSTON-Principal Apartments 2777 a partnership backed by Principal Financial of Des Moines, IA sold the 442-unit Ashford Court Apartments to a local private operator. The buyer beat five other offers by bidding an attractive price and closing with no price re-trades.

“That was a big victory in today’s lending environment,” comments Apartment Realty Advisors’ Matthew P. Rotan, who teamed with Russell Jones, also of ARA, to broker the transaction. He tells GlobeSt.com the buyer financed the asset at 12777 Ashford Point Dr. with a Freddie Mac loan.

The sales price was kept under wraps, though it sold at an 8% cap rate. Harris County Assessment District values the 1983-built property at $15.1 million. Situated on 11.7 acres, Ashford Court Apartments has one- and two-bedroom units ranging in size from 418 square feet to $1.176 square feet. Asking rent is $.88 per square foot.

Rotan, who is based in Houston, says the Prudential bought the class B complex in 2003, and invested $1.5 million in renovations. Though the asset was very well-maintained during Prudential’s hold, Rotan says some upside was left for the buyer. The buyer will invest around $2,000 more per unit to bring the quality up even more, though the complex offers a strong cash flow in the Westchase market.

“He’s an owner-operator who will put some TLC into the deal,” Rotan adds. “The asset will get hands-on, day-to-day management.”