DEAL OF THE DAY: ARA Brokers Sale of Uncompleted Apartment Property
Apartment Realty Advisors (ARA) recently arranged the sale of The Bridgemoor at Killeen, a 180-unit apartment community in Killeen, Texas.
Killeen, Texas—Apartment Realty Advisors (ARA) recently arranged the sale of The Bridgemoor at Killeen, a 180-unit apartment community in Killeen, Texas.
On behalf of ARA’s Secondary Markets team based in Austin, Texas, Jeff Patterson and Kelly Witherspoon represented the seller, a financial institution. ARA marketed the property in cooperation with Kitty Wallace, senior vice president at Colliers International in Los Angeles.
Hayden Properties, a private investor based in Lake Oswego, Ore., purchased the property for an undisclosed price, adding to its already diverse multifamily portfolio in Texas, Arizona, Mississippi and Georgia. The Bridgemoor at Killeen represents the buyer’s first acquisition in the Killeen market; however, they own other Texas multifamily assets located in Harlingen, Kingwood, Lake Jackson, San Marcos, and Tyler.
“The Bridgemoor at Killeen represented a unique opportunity to purchase a newly-constructed multifamily asset that was approximately 90 percent complete at the time of the sale,” says Jeff Patterson. “The buyer expects to spend approximately $1 million dollars to complete the construction and allow leasing to resume. We expect the property to lease-up relatively quickly, as it will be popular with the troops at Fort Hood.”
“This is obviously the type of distressed transaction that buyers are searching for,” added Patterson. “We received more than 20 offers within the initial marketing period and the bidding quickly became extremely competitive.”
“Hayden Properties is pleased to have emerged as the winning buyer on favorable terms for this new, yet unfinished multifamily asset,” said Bill Kallman, Hayden Properties’ vice president of Financial Operations. “This asset is the type of distressed multifamily acquisition that is targeted by the firm’s closed-end R.E. Distress LP Investment Fund, and we welcome deal flow of this nature as we finish forming the Fund.”
“While apartment occupancies in Killeen can fluctuate as troops move in and out of the market,” said ARA’s Witherspoon, “the submarket within which Bridgemoor is located has remained stable for the past year. The local first quarter 2010 market survey for that respective submarket reported a very healthy 98.7 percent occupancy, with no concessions currently being offered.”
The Bridgemoor at Killeen is located at 2710 Cunningham Road in Killeen, TX, just south of Highway 90, the city’s main thoroughfare, and is also in close proximity to major employers and national retailers. Construction of the property commenced in 2009 and is approximately 90 percent completed.
The gated community offers spacious one and two bedroom units averaging 820 square feet in size, and an excellent amenities package including state-of-the-art fitness center, salt water pool and hot tub, 50-seat surround sound movie theater, business center, game room and picnic areas. All units are one-story with extensive features including wood laminate flooring, base and crown moldings, custom two-tone color scheme, brushed nickel hardware, built-in computer desk and bookshelves, washer and dryer connections, covered patio, and exterior storage area, with vaulted ceilings in select units. Kitchens include granite countertops, built-in microwave and dishwasher, pantry and solid wood oak cabinets. Bedroom and bathroom amenities include spacious walk-in closets, walk-in showers, pedestal bathroom sinks and linen closets.