Lynd Residential Acquires 438-Unit M-F in Houston
- Feb 01, 2013
Lynd Residential Properties acquired the Limestone, a 21-building, 438-unit apartment complex in the Briar Forest-Ashwood submarket of Houston, with plans to upgrade the property and thus increase its value.
“We look for markets with long-term fundamentals, and if you break it down, Texas did extremely well during the downturn and has great prospects going forward,” Victor Mendiola, Lynd’s president of acquisitions, told Commercial Property Executive. “Limestone fit the bill of a classic good location, strong submarket and a multi-family property that fit well with our value-add strategy.”
Located at 14723 West Oaks Plaza St., the complex sits on 26 acres facing West Oaks Plaza Drive near Richmond Avenue. Lynd liked its proximity to the Energy Corridor in particular. It also sits near retail venues on Westheimer Road. “We see a lot of upside with very limited downside in a straight value-add opportunity,” Mendiola added.
The previous owner purchased the 14-year-old property out of bankruptcy in 2009 and made basic improvements to the asset. Lynd plans to capitalize on those improvements with further upgrades, bringing the property to Class A standards by modernizing unit interiors—in particular, upgrading the kitchens, fixtures and bathrooms—and enhancing common-area amenities.
“What we found across the board was there are opportunities on the interiors of the units to really drive the rent side of the equation for the deals that we’re looking at,” Mendiola said.
LRP obtained Fannie Mae, non-recourse financing for the transaction and also prepaid a CMBS loan that was due to mature in late 2013.
“Limestone is a great deal for us and our investors, and the property plays well to Lynd’s core strength as a value-add owner and operator of multi-family assets nationwide,” put in A. David Lynd, the company’s president & COO. “We look forward to closing additional deals in the near term that provide similar value-creation opportunities.”