L.A. Multifamily Investor Makes Double Play in Houston

HOUSTON-After a two-year hold on a double foreclosure, TriMont Real Estate Advisors Inc. on behalf of its client, Lehman Brothers Inc., has sold the 330-unit Villagio and 296-unit Palm Court Apartments to Investors Management Trust Real Estate Group Inc., a private capital group from Los Angeles. The Villagio was on the market for $17.5 million and the Palm Court was listed for $16.6 million.

According to the Harris County Appraisal District, both properties were owned by Hidden Palm Associates LP of Dallas from 1998 until 2001 when the keys were handed over to Lehman Brothers.

Todd Marix, senior vice president of the local office of CB Richard Ellis Inc., tells GlobeSt.com that Lehman Brothers in New York City and TriMont, its Atlanta-based advisory firm, finished renovations started by the previous owner, stabilized the properties and put them on the market last fall. The CBRE team of Marix, G. Craig LaFollette, senior vice president, and J. Todd Stewart, senior vice president, were hired to sell the properties.

Marix says the properties were separately marketed, each garnering 16 offers and each going to top bidders, who for different reasons, were unable to make the close. Investors Managers Trust had offers resting on both properties so it became the logical choice from the seller’s perspective.

Located at 7900 Locke Lane in the Galleria submarket, the Villagio has an occupancy in the low 90% range. Its units average 913 sf while the median rent is 79 cents per sf. Marix says the townhouse-style complex, developed in 1967, has varying facades and courtyards for a built-in community atmosphere. The Harris County Appraisal District assesses the 12.6-acre asset at $9.3 million.

The Palm Court Apartments at 801 Country Place Dr., also with occupancy hovering in the low 90% range, has a unit average of 1,048 sf and rents hovering at 70 cents per sf. Its larger unit size and proximity to elementary, middle and high schools in West Houston make it a family-oriented complex, Marix points out. The 12.8-acre property, built in 1973, is assessed at $9 million.