Longview 152 multifamily units part of $300M deal

LONGVIEW – The Related Real Estate Recovery Fund has acquired 21 Class B multifamily properties, comprised of 3,128 units, in Longview, Midland and Odessa for about $300 million. The Pivotal Group sold the properties.
 
Of the units sold, 152 are in Longview. Fourteen of the assets, with 1,751 units, are in Midland, and six assets, with 1,225 units, are in Odessa.

The properties were completed between 1974 and 1983, but have been extensively renovated after being acquired by Pivotal in 2012 for about $13 million.

The Midland-Odessa area has 3.2 percent unemployment, an average household income of $157,000, 97 percent occupancy of multi-family housing, and the potential to substantially raise rents, according to CBRE.

The Related Cos. expects to improve the portfolio by implementing institutional-quality management practices and investing significant capital to upgrade the properties.

“With the exception of the past five years, the Midland-Odessa region experienced an extremely limited amount of new construction and capital upgrade investment since mid-1980s, creating a gap in the marketplace,” said Justin Metz, managing principal of Related Fund Management.

Read more at Globe St. and Commercial Property Executive. Listen to Podcast 210 for more ‘Small Towns, Big Deals’.