Transaction Overview
George Smith Partners arranged the $6,700,000 equity investment to facilitate the acquisition of a 400 unit multifamily property in Houston, Texas. The recently renovated class A asset was operated poorly due to ownership and management turmoil. The resulting discounted value promised significant yield for the new buyer, a strong regional operator with a portfolio of apartments in Texas. Existing debt was assumed as part of the acquisition at an initial purchase basis of $65,000 per unit. Minor renovations and an extensive management overhaul are expected to reposition the asset for a long term hold in the sponsor’s portfolio. The institutional investor introduced by GSP anticipates multiple acquisitions with the sponsor, thereby expanding their holdings in the southeast.
