Houston Apartment Complexes Sold to Out-of-State Investors

In a market where employment continues to grow, a luxury apartment complex in Downtown Houston and another in the Westchase submarket were sold to out-of-state buyers. The Lofts at the Ballpark–a 375-unit Class A luxury property located Downtown–was sold to Archstone-Smith, a publicly traded owner and operator of more 344 communities, representing 86,014 units, that ultimately acquired the property from New York-based Sentinel Real Estate Corp. City West apartments–a 510-unit garden-style apartment community located in the Westchase submarket–was sold by Sentinel to Chicago-based TVO Realty Inc., which has plans to invest around $5,000 per unit in interior upgrades in an effort to push rents. Financial details of the transactions were not disclosed.The Lofts at the Ballpark (pictured) was developed in 2002 by Houston-based Hanover Co., a multi-family developer of more than 38,000 units nationally. The property is within walking distance of Minute Maid Ballpark, home of the Houston Astros, and is just three miles north of the largest medical complex in the world, the Texas Medical Center, which has an employment base of more than 73,600 people. The Lofts at the Ballpark was 97.6 percent occupied at the time of the sale. City West is located near Houston’s Energy Corridor and shopping, restaurant and entertainment options. Developed in phases from 1995 to 1997, the property’s footprint includes 26 three-story residential buildings and a separate office/clubhouse building set on 23.75 acres. Additionally, the offering included a one acre tract of raw land with an estimated value of $1.5 million to $2 million. Houston is forecast by many experts to lead the nation in employment growth for the near future, due largely to the area’s healthy energy and construction sectors, which generated nearly 100,000 new positions in 2007, according to a Marcus & Millichap Real Estate investment Services report. Apartment Realty Advisors Houston principals David Mitchell, David Oelfke, David Wylie and Matt Rotan represented the sellers in both The Lofts at the Ballpark and City West transactions. Blog Story and Comments