Odessa sees 1,225 units sell in $300M dealOdessa sees 1,225 units sell in $300M dealhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=46472014-03-27T14:07:00Z2014-03-19T00:00:00Z

ODESSA, MIDLAND - The Related Real Estate Recovery Fund has acquired 21 Class B multifamily properties, comprised of 3,128 units, for about $300 million. The Pivotal Group sold the properties.

Six assets, with 1,225 units, are in Odessa, and fourteen of the assets, with 1,751 units, are in Midland. 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 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.com and Commercial Property Executive.

For more details on the acquisition, see Longview: 152 multifamily units part of $300M deal.

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