BRT Sells Houston Portfolio for $33M
- Jul 18, 2019
BRT Apartments Corp. has sold the 240-unit Stonecrossing and the 144-unit Stonecrossing East in Houston for $33.2 million. Per Harris County public records, the buyer was Comunidad Realty Partners. Bellwether Enterprise originated a $24.5 million, 10-year Freddie Mac portfolio acquisition loan for the new owner. Recently, the company originated a $36.5 million construction-to-permanent loan for the 246-unit Link Apartments Grant Park in Atlanta.
Located at 3030 Elmside Drive in a dense residential area, Stonecrossing is close to dining and retail options, while downtown Houston is 13 miles west. The property comprises one- to three-bedroom apartments in 28 two-story buildings completed in 1978 on a 9.8-acre site. Common-area amenities include a fitness center, a playground and two pools. In June, the asset was 95.8 percent occupied, per Yardi Matrix data.
Situated at 2901 Elmside Drive, Stonecrossing East is adjacent to the first community and consists of two- and three-bedroom units in 12 two-story buildings spread across a 6-are site. Yardi Matrix information shows that the property was 96.5 percent occupied in June.
According to Jeffrey Gould, president & CEO of BRT Apartments Corp., the REIT purchased the assets in 2013 in separate transactions and repositioned them through a value-add improvement program. Moreover, it held a 91 percent equity interest in the communities and will use the profits from the disposition to pay down their credit facility.