Developer shows Texas apartments

Real Estate Alert, June 2, 2004

A developer has set a $25 million asking price for a well-leased apartment complex in suburban Houston.

The 322-unit Lodge at Baybrook, in Friendswood, was developed in 1999 by Hanover Co., a local firm headed by Ben Bergeron and Murry B0wden and primarily backed by Metropolitan Life. At the asking price, the initial yield would be 7.8%.

The 12-building complex is 96% occupied, with one- and two-bedroom units renting for $719 to $1,139. The Friendswood/Pearland submarket ranks second among 39 Houston-area submarkets for occupancy growth over the past six months and has an average Class-A occupancy rate of 95.2%.

The property, at 19100 Glenwest Drive, is adjacent to the 1.1 million-sf Baybrook Mall, about 20 miles southeast of Houston.

The offering comes on the heels of Hanover's sale in March of the 356-unit complex at 1200 Post Oak Boulevard in Houston. Sentinel Real Estate paid $80 million for the property, which was completed last year.

CB Richard Ellis has the listing on Lodge at Baybrook. For more information, call Craig LaFollette at 713-840-6535.