534-Unit Complex Sells for Nearly $16M

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HOUSTON-A class C apartment complex on the southwest side finds its way to a new limited partnership owner. Houston-based GALP Sierra Vista LP has acquired the 534-unit Sierra Vista Apartments from StarPoint Properties LLC for just south of the $16-million ask.

“The buyer is an experienced landlord in the Houston area with a sizeable portfolio. He was able to move fairly quickly and close in an all-cash deal to the seller,” says Todd Stewart, senior vice president with CB Richard Ellis’ Houston office. The CBRE sales team included executive vice president Craig LaFollette, senior vice president Todd Marix and senior associate Tre Banks. The buyer was self-represented.

Stewart tells GlobeSt.com that the seller had acquired the 1973-constructed complex at 5500 El Camino Del Rey in 2002. “They bought it out of foreclosure and spent about $4.5 million for a major renovation,” he adds. “After owning it for three or four years, they elected to sell to take advantage of marketplace liquidity.”

Once on the market, Sierra Vista Apartments attracted 11 offers. Stewart explains that part of the attraction for bidders was the stable 98% occupancy in addition to StarPoint’s renovation. Situated on 20 acres, Sierra Vista Apartments offers a mix of efficiencies and one-, two- and three-bedroom units from 625 sf to 1,300 sf. Monthly rents range from $340 to $770.