Harbor Group Affiliate Buys 456-Unit M-F Community in Houston
- Apr 08, 2014
An affiliate of Harbor Group International L.L.C., of Norfolk, Va., has purchased Westchase Creek, a 456-unit multi-family community in Houston’s Westchase District, for an undisclosed sum, it was announced Monday by HFF, which brokered the property for the seller and arranged financing for the buyer.
The seller, Allen Harrison Co., is a Houston-based, privately held real estate investment and service company specializing in multi-family properties with a focus on major markets in the South.
Westchase Creek is at 3000 Woodland Park Drive between Westheimer and Richmond avenues west of Beltway 8. It was renovated in 2012–13, has an average unit size of 639 square feet and is 93 percent leased.
The buyer assumed an existing Freddie Mac loan secured by HFF two years prior. In addition, HFF’s debt placement team secured a five-year, fixed-rate supplemental loan through Freddie Mac for the acquisition. HFF will service the loan through its Freddie Mac Program Plus Seller/Servicer program.
The debt placement team representing the buyer was led by HFF director Cortney Cole and real estate analyst Will Crawley.
The HFF investment sales team representing the seller included senior managing directors Craig LaFollette, Todd Stewart and Todd Marix and directors Tre Banks and Chris Curry.
Westchase remains a “very hot area,” Jeffrey Fript, associate VP of investments at Marcus & Millichap, told Commercial Property Executive. He should know, having been part of a team that marketed the 312-unit Mediterra at Westchase Apartments, which sold several weeks ago.
Westchase’s strong fundamentals, Fript said, include its proximity to Houston’s Energy Corridor, with its 80,000-some jobs and 16 million square feet of office space, and its easy access to the Beltway and I-10.
The Westchase multi-family market is doing well, with vacancies falling and rents rising, according to Marcus & Millichap Research Services. The average vacancy rate, 10.1 percent in 2010, declined to 5.5 percent in 2013, and average effective rent, just $746 in 2010, stood at $864 last year.