Midland, Odessa: 2,976 units part of $300M deal

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

The properties were completed between 1974 and 1983, but have been extensively renovated after being acquired by Pivotal Group 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 multifamily 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 Realtynewsreport.