HOUSTON, TX - McCann Realty Partners, LLC ("McCann") announced the acquisition of Estancia at Shadowlake in Houston, Texas. The 324-unit, garden-style community located in the Alief/Westchase submarket of metropolitan Houston was built in 2005 and will be managed by Pegasus Residential, LLC. The acquisition was funded in part by a seven-year Freddie Mac fixed rate loan with a rate of 4.42 percent originated by Wells Fargo Multifamily Capital.
"Estancia at Shadowlake is a Class A suburban garden community in an improving Houston submarket with the immediate opportunity to increase economic occupancy and cash flow," said McCann's Chief Investment Officer Brand Inlow.
"We see Houston as a good market that is getting better every quarter from very strong in-migration and job growth. While the market will see new supply by the second half of 2012, there is very little new supply over the next 12 months," said John McCann of McCann Realty Partners. "We liked the value we saw in Estancia at Shadowlake, which we acquired well below replacement cost with attractive Freddie Mac debt and the prospect for solid rent growth."
McCann is currently seeking apartment acquisitions in the Mid-Atlantic, Southeast and Texas. For more information, please contact Brand Inlow, Chief Investment Officer, at (804) 290-8870.
Formed in October 2004, McCann Realty Partners and its principals have decades of diverse experience in the apartment business. MRP teams with institutional capital sources to acquire, develop and manage garden apartment communities in the Southeast, Southwest and adjacent regions. By leveraging industry relationships developed during the past 40 years, MRP has demonstrated its ability to access capital and locate, finance and close apartment deals. The Company is in the market continuously to acquire both Class A and value-add apartment communities of 150 units or more.
Since inception, MRP has acquired 17 apartment communities totaling more than 4,100 units in transactions valued at approximately $325 million. The Company also develops apartment communities in Texas. It is currently building in suburban Houston and is scheduled to start another community in north Dallas in the fall.
Wells Fargo & Company has integrated nationwide commercial real estate banking, capital markets, and advisory services into a single platform that includes lending, syndications, debt placement, equity raising and underwriting, M&A and servicing. Wells Fargo was ranked as the nation's largest commercial real estate lender and servicer by the Mortgage Bankers Association for 2010. Wells Fargo was named the largest issuer of preferred stock REIT equity and the largest domestic REIT and real estate bookrunner by Thompson Financial in 2010, as well as the most active brokerage of large commercial real estate sales in 2010 by Real Estate Alert.