AUSTIN AND HOUSTON, TEXAS — A joint venture between Ascension Commercial Real Estate and Moriah Real Estate Co. has acquired a 4,568-unit portfolio of Class B apartment buildings in Texas for an undisclosed amount. The venture acquired the portfolio from the seller in cooperation with its lenders.
The portfolio comprises one property located in Austin and 14 properties located in Houston. The Austin property is the 192-unit Aubry Hills. The Houston properties include:
• Sierra Pines – 804 units
• Walnut Bend – 556 units
• The Meadows – 480 units
• Pointe at Steeplechase – 316 units
• Hayes Place – 307 units
• Spring Meadows – 304 units
• Shadow Creek – 296 units
• Princeton Club – 291 units
• The Berkshire – 227 units
• Bay Place – 193 units
• Sheffield Square – 190 units
• The Park on Burke – 160 units
• Timber Run – 156 units
• Bay Crest Village – 96 units
Assisting both sides of the deal was the Jones Lang LaSalle team of J. Michael Lewis, Greg Austin, Chip Nash and Wade Schmitz.
“Houston and Austin are considered two of the premier multifamily markets in the United States, and these various locations are well diversified within both cities,” Lewis said in a statement. “The buyers purchased this portfolio at a substantial discount to replacement cost and will be able to create significant value through increased occupancy and rental rates.”
The team of Ken Lawrence and Chris Pollard of LMI Capital's Houston office arranged the senior financing for the deal on behalf of the joint venture.
Ascension Commercial Real Estate is a Houston-based company that specializes in multifamily turnaround and property management in the Southwest United States. Moriah Real Estate is a Midland, Texas-based private equity and real estate firm. The company currently control 5,600 multifamily and student housing units in markets throughout Texas, Oklahoma, Arkansas, Florida and South Carolina.
— Coleman Wood