HOUSTON – (Realty News Report) – Alfa TX Investment Group has purchased the 262-unit Willow Ridge apartment community in southwest Houston.
The garden-style complex, built in 1977, is located at 12800 Dunlap Street, just south of Highway 90 and west of Hillcroft Avenue.
JLL Capital Markets represented the seller, Sentinel Capital, in the transaction. Sentinel Capital is a Houston-based firm led by Greg Nelson.
The buyer, Alfa TX Investment Group, is led by Vishnu Jalan. Financing for the acquisition included an $11,340,000 note payable to JLL Real Estate Capital LLC. JLL assisted the buyer in securing a 10-year, fixed-rate Fannie Mae loan, which will be serviced by JLL Real Estate Capital, LLC.
The Willow Ridge property totals 188,220 square feet and contains 262 one-, two- and three-bedroom units. The community has averaged roughly 93 percent occupancy over the past five years.
Since 2016, Sentinel Capital, under Greg Nelson’s leadership, has invested more than $750,000 in property improvements. Those upgrades include new signage, entrance gates and fencing, enhanced landscaping, HVAC and plumbing work, and updates to the clubhouse and pool areas.
The JLL Capital Markets team representing the seller was led by Joey Rippel and Chris Young, with analyst Kyle Whitney. The debt team working for the borrower was led by Director Laura Sellingsloh.
“The competitive process for Willow Ridge demonstrated strong investor appetite for Houston multi-housing through the pandemic,” Rippel said. “Especially for workforce product where collections remained high. Willow Ridge is a great strategic investment in the current environment. It is a clean and stable cash-flow asset with original interiors that can be upgraded to increase NOI as the market improves.”
Broader market data from Transwestern’s third-quarter multifamily report noted that the sales market had slowed. Transwestern reported that only nine apartment communities, totaling 2,314 units, were sold for $320.3 million in the third quarter, a 78.4 percent decline from the same quarter in 2019, based on Real Capital Analytics data.
Locally, the southwest submarket continues to attract development activity. Alliance Residential recently acquired 13 acres off Highway 90 for a planned 336-unit multifamily development located between Hiram Clarke Road and South Post Oak Road, adjacent to the Menninger Clinic psychiatric facility.
Nov. 8, 2020 Realty News Report. Copyright 2020.
File: Apartment Complex Sold in Houston
Caption: Willow Ridge. Courtesy JLL
File: (2) JLL Capital Markets. Willow Ridge. Laura Sellingsloh. Apartment Complex Sold in Houston’s Slow Investment Sales Market