Investcorp Buys 1,076-Unit Houston Portfolio

Investcorp acquires four properties in Houston's Copperfield master-planned community; American Realty Advisors buys a 224-unit asset in North Dallas; and Hendricks & Partners negotiates a $14.4 million apartment sale.

Houston—Investcorp has acquired an interest in a 1076-unit portfolio in Houston comprised of four multifamily properties. The company capitalized the assets with current owner MHP Investments, which will retain an interest in the transaction. Investcorp financed the transaction with a 10-year, fixed-rate financing.

The properties, which are located in the master-planned Copperfield community of northwest Houston, recently underwent a $6 million renovation. The four properties are currently 95 percent occupied.

“Vacancy rates for rental apartments have declined as home ownership in the United States has fallen to its lowest level in more than a decade,” says Brian Kelley, a principal at Investcorp. “This shift, in the context of relatively modest new supply, has created interesting opportunities in the multifamily sector.”

American Realty Advisors buys a 224-unit community

Las Colinas, Texas—American Realty Advisors has purchased Portofino at Mercer Crossing, a 224-unit, 4-story community located in the North Dallas submarket of Las Colinas. The acquisition was completed as a joint venture with The Marquette Companies.

“With desirable demographics and accessibility to amenities and transportation infrastructure, Portofino provides the firm with a value-driven opportunity in a high-quality asset that is priced significantly below mid-rise replacement cost and recent trades of comparable properties,” says Kirk Helgeson, executive vice president and executive managing director at American. “We anticipate our active management strategy will help reposition the property into a core asset and can generate favorable returns for our clients.”

Portofino at Mercer Crossing was completed in 2008. Amenities include a fitness center, structured parking, clubhouse, internet café, business center, and a pool with spa.

Hendricks & Partners negotiates $14.4M apartment sale

Tustin View

Santa Ana, Calif.—Hendricks & Partners announced the sale of Tustin View, located at 2002 and 2010 Ponderosa Street in Santa Ana, Calif. The 84-unit apartment community was sold for $14.4 million.

Tustin View was built in 1968 and features 34 one-bedroom, 20 two-bedroom, one-bath, and 30 two-bedroom, two-bath units. The site is a total of 2.80 acres and features a community pool, barbecue cabana, fitness center, covered parking, and two on-site laundry facilities. The property is located close to the Santa Ana (I-5), Garden Grove 22, and Costa Mesa 55 freeways, providing residents with convenient access to major employers, shopping, and entertainment.

The seller was Peak 1031 Exchange, Inc, a California corporation, as Qualified Intermediary for: JHPark Villa LLC, a California limited liability company of Los Angeles. There was an FHA sub-4 percent fixed-rate 40-year loan, which the buyer assumed.

The transaction was negotiated by Peter M. Hauser (Newport Beach), Robin D. Ossenbeck (West Los Angeles), and Steven C. Brombal (Newport Beach) of Hendricks & Partners.