DALLAS, TX - Behringer Harvard announced today its acquisition of Parkside Apartments, a 240-unit apartment community in Sugar Land, an affluent and rapidly-growing city in eastern Fort Bend County approximately 20 miles southwest of downtown Houston.
Parkside Apartments was acquired for the portfolio of Behringer Harvard Opportunity REIT II, Inc. through a joint venture with affiliates of Houston-based Arcadian Real Estate Group (AREG), a comprehensive real estate company offering leasing, management and investment services. A Behringer Harvard affiliate will serve as the managing partner and AREG will provide property management services.
"We are pleased to acquire this well-leased community in a supply-constrained submarket on an attractive basis below replacement cost," said Mr. Michael O'Hanlon, Chief Executive Officer of Behringer Harvard's Opportunity Platform. "Texas is an attractive market for institutional investors, and Houston benefits from a strong economy and favorable demographics. We expect Parkside Apartments to provide attractive cash flow and strong upside potential. Our value-added improvement program should further enhance the appeal of this popular community while lifting rents."
The joint-venture partners are planning a renovation program that will include improvements for Parkside Apartment's common-area amenities, such as the clubhouse and pool, and upgrades to unit finishes. AREG will provide construction management services for the two-year renovation project.
Built in 1998 on a 9.2 acre site at 12100 S. Highway 6 South, Parkside Apartments comprises 19 residential buildings of two or three stories each. The garden-style apartment homes feature up to three bedrooms and two baths. Ranging in size from 643 square feet to 1,300 square feet, the units include 9-foot ceilings and full-size washer and dryer connections. Covered parking and detached garages also are available.
Situated near the intersection of Highway 6 and U.S. Highway 90, Parkside Apartments also offers convenient access to U.S. Highway 59. The community is less than a mile from Sugar Land Airport and the Imperial Sugar Land development, a master-planned mixed-use project now underway. Plans for the 700-acre Imperial Sugar Land include a professional business park, residential neighborhoods, retail centers, restaurants and lodging. The newly constructed Constellation Field is already hosting the minor-league baseball games of the Sugar Land Skeeters.