The Chicago investor bought the class A complex from Sentinel Real Estate Corp. The sales price was undisclosed, with the Harris County Assessment District valuing the complex at $19 million. The interesting aspect about Wynnewood at Wortham is that, unlike a lot of multifamily properties on the market these days, the class A asset at 10225 Wortham Blvd. wasn't in any kind of distress, nor was it in receivership or foreclosure. It also has a stable occupancy at 94%. This doesn't stop it from providing value-add opportunities, however. "This particular pocket of the submarket has been operating at cyclical lows, as it took on too much supply," says Tim Burns, ALR's principal. "Effective rents are just starting to come back, and we feel like we're buying at the bottom of the rents with this acquisition."

To support the value-add opportunity, ALR will make minor upgrades to the complex, the first that have been made since it was completed in 1998. Capital improvement plans include clubhouse renovations, pool and interior unit upgrades and landscape enhancements. The asset, which sits on 23.4 acres, will be managed by company subsidiary ALR Properties Company LLC. Burns says the plan is to continue buying in Texas and Arizona, as well as the southeast. "We're driven by where we think economic growth and jobs will be," he tells GlobeSt.com. ALR is seeking assets between 10 and 15 years old in primarily suburban locations, and that haven't had upgrades. Burns says ALR closed on six deals during the past 16 months. Within the last year, the company has acquired Stone Mist Apartments in Houston and bought an $8 million debt belonging to St. Charles Executive Center in St. Charles, IL.

ALR's plan is to close two or three more deals by the end of 2011, though Burns acknowledges that doing so will be a challenge. "It's a pretty competitive landscape out there for multifamily," he says.

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The Chicago-based investor bought the property out of receivership from special servicer, Midland Loan Services, for an undisclosed amount. Trigild served as the receiver.

Stone Mist Apartments is Adams LaSalle's fourth multifamily acquisition in the past 16 months, according to Tim Burns, principal with Adams LaSalle. The 12-year-old complex brings the firm's local portfolio to five properties totaling nearly 1,300 units. "We had been tracking Stone Mist Apartments for a year and half – watching and waiting [for the opportunity to acquire it]," Burns tells GlobeSt.com. Jim Hearn of Hendricks & Partners marketed the property, which is situated on 8.7 acres at 10901 Mist Lane in the northwest submarket. Adams LaSalle obtained a 10-year, fixed-rate loan from Freddie Mac to acquire the asset.

Developed by local firm Oakmont Group, the apartment community consists of eight two- and three-story garden-style buildings and a single-story clubhouse. It features a mix of one and two-bedroom units ranging from 669 square feet to 1,088 square feet. Monthly rents range from $738 to $1,080. The property was 93% occupied at the time of closing.

"Stone Mist fits perfectly into our strategy of buying high quality assets that are 10 to 15 years old and have not been upgraded," Burns says, adding that Adams LaSalle plans to invest about $4,000 per unit to upgrade the property. "With a little bit of capital, we think we can improve the performance – both occupancy and rental rates." Stone Mist Apartments' capital improvement program will include: clubhouse renovations; pool upgrades; landscape and signage enhancements; and interior unit upgrades. Adams LaSalle's multifamily operating affiliate ALR Properties Company LLC will manage the community.

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The Chicago-based investor bought the 272-unit, class-A community for an undisclosed amount, placing a new Freddie Mac loan on the property at closing. Industry experts estimate Three Fountains Apartments traded for about $22 million. Including its acquisition of Three Fountains, Adams LaSalle has purchased three multifamily properties this year, according to Tim Burns, a principal with the company. "We are actively pursuing growth," he tells GlobeSt.com. "We would like to buy 2,000 to 3,000 units in 2011." Adams LaSalle is looking for investment opportunities in southwest markets, particularly those in Texas. "We like the stability and job growth there," Burns says, noting that the firm bought properties in Houston and Phoenix this year. The firm has been looking for an opportunity to buy in San Antonio for at least a couple of years. "We're looking for assets in specific submarkets within San Antonio, and we're looking for a specific type of asset - one that is 10 to 15 years old that we can upgrade," Burns explains.

Three Fountains was marketed by Will Balthrope and Ryan Epstein of the Balthrope Group of Institutional Property Advisors, a Marcus & Millichap Co. "We've worked with them before, and they knew we were looking in San Antonio," Burns says. Located in the Westover Hills submarket on Culebra Road, Three Fountains consists of 20 two-story apartment buildings on 13.51 acres. The community, which was built 12 years ago, includes a clubhouse, resort-style swimming pool and spa, fitness center, controlled access gates, barbecue areas, detached garages, sand volleyball court. It was 94% occupied at closing.

Burns says Adams LaSalle plans to complete both exterior and interior capital improvement programs including clubhouse renovations, pool upgrades, landscape and signage enhancements. "We are going to spend about $4,000 to $5,000 per unit - units will get new flooring, fixtures, lighting, countertops and paint schemes," he notes. Adams LaSalle's multifamily operating affiliate ALR Properties Company LLC will manage Three Fountains.

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The Chicago company acquired the class B complex from American Investment and Management Co. for north of $8 million, with plans to make interior and common upgrades.

"We liked that this was the leading (class) B asset in its submarket, and it has a nice niche on which we think we can improve," comments Adams LaSalle principal Tim Burns. Burns tells GlobeSt.com that Adams LaSalle will have a hands-on approach toward managing the complex at 1333 N. Dysart Rd.

Adams LaSalle acquired the seven-acre, 17-building complex with cash, and will seek financing during the early part of 2010. Apartment Realty Advisors' Phoenix office represented Denverbased AIMCO in the transaction, while the buyer was self-represented. The asset has one- and two-bedroom units ranging in size from 408 square feet to 844 square feet. Rents are between $439 and $634 a month.

Burns explains that Adams LaSalle had been interested in the metro market for several years, but it didn't make sense because of wildly inflated pricing. Now, with prices coming into more reasonable ranges, it's time to focus on more product.

"This is one of our target markets," Burns acknowledges. "We're looking at Newport Apartments as the first of many buys." The sweet spot for this company is similar properties with a light valueadd component, though Burns says Adams LaSalle will look at any prospect that makes good financial sense.

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The Chicago based buyer closed on the deal with seller TA Associates less than six weeks after acquiring the 204-unit Newport Apartments in Phoenix. "Our goal is to close on 2,000 to 3,000 units in 2010, in various markets throughout the U.S.," says Timothy Burns, principal with Adams LaSalle Realty. Legacy Park Apartments at 10801 Legacy Park Dr. fit perfectly with the buyer's sweet spot. "It's in a good location, with aggressive pricing and generally what we're looking for, which are decent-quality assets at attractive pricing," Burns tells GlobeSt.com.

Built in the late 1990s and situated on 13.5 acres, Legacy Park is 92% occupied. TA Associates of Boston had renovated the exterior during its close to four-year hold, leaving the interior for Adams LaSalle to handle. Burns says the entire upgrade cost will amount to approximately $1 million.

Burns comments he wasn't sure how much competition Adams LaSalle was up against with Legacy Park, saying only that Jim Hearn with Hendricks & Partners represented the seller. He did acknowledge, however, that more buyers have been coming out on the market recently, though there's been a lack of quality product from which to choose.

But this is likely to change during 2010. "I think the better-quality product is starting to come online, which is of interest to us," Burns notes. "It's happening because sellers are more comfortable with where the market is, and because more foreclosures are hitting the market."

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It originally was listed at $28.9 million when it came to market in 2006, but sources report it has sold for well below the ask. The Harris Central Appraisal District assesses the complex at 19100 Glenwest Dr. at $20.1 million. Timothy Burns, principal of the Chicago-based investment group, tells GlobeSt.com that funds have been set aside to upgrade and address deferred maintenance at the nine-year-old complex. "We liked the quality of the asset and the ability to come in and create some value," he adds.

The 12-building complex is positioned on 13.7 acres. The one- and two-bedroom units range from 732 sf to 1,084 sf, with monthly rents of $860 to $1,128. Occupancy is 94%. Adams LaSalle Realty will manage the complex.

CB Richard Ellis' executive vice presidents G. Craig LaFollette and J. Todd Stewart; senior vice president M. Todd Marix and senior associate Tre T. Banks, all in Houston, represented the Metairie, LA-based MBS Cos., which filed for bankruptcy in late 2007. Many of its Texas assets are hitting the market.

Burns, who negotiated the transaction on behalf of Adams LaSalle Realty, points out that the Lodge of Baybrook acquisition puts its Houston holdings at more than 1,000 units. Its portfolio consists of the 202-unit Las Brisas on El Dorado at 707 El Dorado Blvd., 347-unit Hamptons at 16202 El Camino Real and 182-unit Oaks of Westchase at 2851 Wallingford Dr.

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