Resource Real Estate Opportunity REIT has purchased a distressed multifamily REO property in Houston that was experiencing operational and capital deficiencies for $11.4 million.
Fannie Mae foreclosed upon Bristol Apartments in August 2010 with an outstanding loan balance of $18.6 million. The purchase price is a 78% discount to the property’s estimated replacement cost of $53 million.
Bristol Apartments includes 856 units, approximately 691,000 rentable square feet and an occupancy level of nearly 52%. Philadelphia, Pa.-based Resource Real Estate, which manages 10 other properties in the Houston area, plans to invest additional capital to improve the overall condition of the complex in order to bring all units to leasable condition, stabilize the occupancy rates and increase the property’s value by making it cash flow positive.
Exterior painting, landscaping and significant upgrades to the common areas will be made in an effort to enhance the property’s appeal and marketability. Current amenities featured at the apartment complex include a clubhouse, swimming pool, fitness center and playground.
Trimont Real Estate Advisors acted as special servicer to sell the asset on behalf of Fannie Mae.
