HOUSTON – (Realty News Report) – Thirty-Seventh Parallel, a Richmond, Virginia-based firm, has acquired Cashel Springs Apartments, a 300-unit complex. This marks the company’s tenth acquisition in the Houston market.
Located at 1422 Wunderlich Drive near Willowbrook Mall in northwest Houston, Cashel Springs Apartments were originally constructed in the 1980s. The property offers a significant value-add opportunity in a mature suburban submarket with access to retail, employment nodes and regional transportation corridors.
Dan Chamberlain, Chief Operating Officer of Thirty-Seventh Parallel, said the purchase price reflected approximately a 45 percent discount to replacement cost. The price point and fundamentals provide room for capital improvements, operational repositioning and longer-term rental growth.
The acquisition was funded using a combination of 1031 exchange proceeds and new investor equity. Long-term, fixed-rate agency debt financing was secured to stabilize the capital structure; the financing was arranged by Cutt Ableson of Berkadia Commercial Mortgage.
Oct. 7, 2019 Realty News Report Copyright 2019
Read the New Book by Ralph Bivins, Editor of Realty News Report
Houston 2020: America’s Boom Town – An Extreme Close Up
Available on Amazon