Source: Resource Real Estate / #Apartments #Multifamily
CLEAR LAKE, TX - Resource Real Estate Opportunity REIT, a non-traded real estate investment trust sponsored by Resource Real Estate, announced the sale of Ivy at Clear Creek Apartments, a 244-unit multifamily community located in the Clear Lake suburb of Houston, Texas.
The Opportunity REIT acquired Ivy for approximately $11.8 million in April 2013. The Opportunity REIT deployed new capital to renovate the property, including unit interiors upgrades and exterior improvements, in addition to adding professional property management expertise.
On Feb. 17, the Ivy was sold to an unaffiliated third party buyer for approximately $19.4 million, generating a cash profit of approximately $4.0 million and an average annual return of 29.7 percent on behalf of the Opportunity REIT.
Kevin Finkel, President and COO of the Opportunity REIT, said, “The Opportunity REIT is designed to take advantage of the dislocation of supply and demand in the U.S. apartment market. The Ivy is a great example of a property located in a highly sought-after suburb with excellent schools but in an area lacking adequate supply of renovated, well-managed apartments with affordable rents. The Ivy represented a great opportunity for renovation and a chance to ultimately provide renters with an affordable, market rate rental with access to the many public services available in the Clear Lake area, including its top rated schools. We created tremendous value in this property and, as a result, were able to sell the Ivy at a considerable profit.”
Resource Real Estate Opportunity REIT acquires and operates a portfolio of multifamily real estate throughout the United States. Opportunity REIT is sponsored by Resource Real Estate, Inc., a firm that specializes in direct real estate investments, commercial real estate lending and global real estate securities.