New York-based Hudson Realty Capital and Los Angeles-based real estate investment company Post Investment Group have acquired the Broadway Square Apartments in Houston, Texas. Financial terms of the deal were not disclosed.
The 2,469-unit property sits on 69 acres adjacent to Houston Hobby Airport. It also features a garden community with amenities comprising 3,600 linear feet of frontage along Broadway Boulevard.
The property was purchased from the estate of owner and developer Harold Farb at a significant discount to market due to the property’s low occupancy rate at 78 percent. It has historically been 93 percent occupied.
“The most accretive aspect of this acquisition is the upside associated with occupancy recapture,” said Post Investment Group’s director of acquisitions Jack Ehrman in a statement. “The sub-market fundamentals, typified by strong employment growth and comparatively low vacancy, serve to mitigate the occupancy risks characteristic of multi-family investment.” Ehrman added that it plans to stabilize the property at 90 percent occupancy.