Behringer Harvard Buys 240-Unit Suburban Houston M-F Property
- Aug 13, 2013
Behringer Harvard has recently expanded the portfolio of Behringer Harvard Opportunity REIT II Inc. with the acquisition of Parkside Apartments in Sugar Land, Texas, approximately 20 miles outside of Houston. Behringer Harvard purchased the 240-unit, Class A multi-family asset in a joint venture with Arcadian Real Estate Group.
An affiliate of Behringer Harvard will take on the role of managing partner. Not one to talk financial specifics regarding its acquisitions, the company is divulging just one morsel of information about the price of the Parkside purchase: it was below replacement cost. Nor will the company share details regarding the renovation program it has planned for the 15-year-old apartment community at 12100 S. Highway 6 South. However, it’s no secret that AREG will provide construction management services for the two-year makeover, which is designed to capitalize on the 9-acre, garden-style apartment property’s upside potential. AREG will also serve as property manager of the already well-leased Parkside.
Behringer Harvard is one of a long list of investors eager to snap up Class A multi-family assets in Houston, where apartment vacancies are low and employment is on the rise. Acquiring in such an environment is no simple feet for most, but it’s less of a challenge for Behringer Harvard.
“We often leverage our established relationships in the industry to identify attractive acquisition opportunities, and the acquisition of Parkside Apartments was consistent with that strategy,” Jason Mattox, chief operating officer of Behringer Harvard, told Commercial Property Executive. “Multi-family assets generally are in high demand, and competition is robust for high-quality, well-located communities like Parkside Apartments. In spite of these trends, we have a strong track record and are confident in our ability to identify attractive opportunities to acquire multi-family communities that fit our investment criteria.”
Parkside is not the only multi-family purchase Behringer Harvard has made for Opportunity REIT II this year. The company added Wimberly at Deerwood, a 322-unit apartment community in Jacksonville, Fla., to the portfolio in February. And 2013 isn’t over.
“The management of Behringer Harvard Opportunity REIT II Inc. is continuing to evaluate an active pipeline of prospective acquisitions,” Mattox added. “The REIT will continue to target income-producing acquisitions including multi-family communities in states with strong economies, well-located office properties, value-added investments in real estate with in-place cash flow, and selected mezzanine-financing opportunities with an attractive risk/reward profile.”