Investment trust adds to portfolio with inner Loop purchase
Mid-America Apartment Communities has added its first inner Loop apartment property to its Houston portfolio andwill gain three more with the merger of Post Properties.
The Memphis, Tenn.-based real estate investment trust has purchased Alexan Heights, a five-story project with 352 units at 655 Yale, from Trammel LC row Residential and the Carlyle Group. The sales price was not disclosed.
Chris Curry, Todd Mar ix, Todd Stewart of H FF represented the seller.
The deal represents the first Houston apartment purchase by ARE IT since Camden Property Trust bought 1200 Post Oak in April 2013, according to HFF. In that deal, Camden paid $108.5 million for the 33- story ,356- unit property, according to a company filing.
“For the right asset, andthe right location, you still have institutions willing to play here in Houston,” said Curry.
A number of new communities have been completed in Houston’ s inner Loop just as leasing activity has been slowing with the economy. There are 6,800 new units in the lease-up phase and another 14,000 under construction in central Houston, according to HFF.
Alexan Heights, three miles northwest of downtown, was under contract when Mid-America Apartment Communities and Atlantabased Post Properties announced their merger in mid August.
Mid-America Apartment Communities now owns a dozen Houston apartment complexes totaling 3,232 units. Once the merger closes, likely by year’ send, the company will add 1,283 units from Post Properties’ three urban communities: the new Post at Aft on Oaks ,3131 W. Loop South near the Galleria; Post 510 at 510 Richmond in Mont rose; and Post Midtown Square at 302 Gray.
The combined company will retain the Mid-American ameand be based in Memphis. It will be the largest publicly traded REIT, based on the number of units owned, with 105,000 units across 317 properties.
Houston-based Camden Property Trust, by comparison, owns nearly 53,000 units in 151 communities. Its two dozen Houston properties have more than 8,400 units.