ARA Real Estate Investment Services Brokers Sale of 320-Unit Apartment Community
- Nov 21, 2014
ARA Real Estate Investment Services, on behalf of Philadelphia-based Lubert-Adler Partners, recently helped with the sale of Tiburon, a 320-unit, Class A apartment community in Houston. The asset was acquired by a private individual for an undisclosed amount.
Tiburon had been under Lubert-Adler’s ownership since 2011, when it was purchased from its original developer, UDR Inc., as part of a large value-add multifamily investment strategy. For the past four years, Lubert-Adler has been hard at work with repositioning the $2 billion, multifamily portfolio. Until now, a significant number of assets have been repositioned and sold, according to the company’s official statement.
“In 2010, we made a strategic decision based on the belief that multifamily rental apartments provide one of the best opportunities to create risk-adjusted, superior returns, because a substantial portion of the overall return is in the form of current yield,” said Dean Adler, Lubert-Adler Partners CEO and Co-Founder. “We aimed for overall returns of 17-20 percent, with 10-12 percent of that target coming from current yield. “
Located just off Beltway 8, Tiburon is close to the Sam Houston Tollway, which includes large industrial employers such as Exxon, Toyota, Siemens and FedEx. In addition, the community has easy access to the Technology Corridor and the Greenspoint Business District. Apartments in the property feature dark-stained cabinets, black appliances, faux wood blinds and crown molding, while community amenities include a clubhouse, a business center, a fitness center and a swimming pool.