Sheldon Good & Company, a Racebrook Portfolio Company and America’s leading real estate auctioneer, will auction Diamond Ridge, a 499-unit residential complex in Houston, to be sold “Absolute”, without reserve, to the highest bidder on Thursday, December 16th. This 37-building garden style apartment community will give bidders the chance to acquire a lender-owned asset in a vibrant city with a surging economy and growing population.
“This auction allows an opportunistic buyer to name their price on a lender owned asset and create value by increasing occupancy through an effective capital improvement plan,” says Alan R. Kravets, Texas Broker for Sheldon Good & Company. “This community has tremendous long-term investment potential.”
The multi-building complex features one, two and three bedroom units in eight separate floor plans on the northwest side of Houston. Built in 1980, it sits on 18 acres of well-maintained land and includes two pools, four laundry areas, an onsite activity center, ample resident parking, and manicured gardens. Diamond Ridge has exposure to over 30,000 cars per day with signage on Antoine Drive, a well-traveled local thoroughfare, and the apartments provide tremendous upside potential by increasing occupancy to the immediate market area.
“The most cost-effective method of selling this property, on a timely basis, is to offer it for sale at auction,” says Kravets. “The auction will both allow the seller to avoid the carrying costs and length of time associated with a conventional marketing program and will be a unique investment opportunity for a savvy buyer.”
Since taking over control of the property in July of 2010, the owner has aggressively implemented proper management controls and has stabilized the tenant base to allow a new owner to start with a dependable monthly cash source and focus on immediate lease-up needs. Owner has also addressed certain life safety issues and has improved the property’s standing with City code authorities.
Houston is the fourth-largest city in the US, and the largest city in Texas with a population of approximately 5.9 million. Considered to be the energy capital of the world, Houston’s economy has a broad industrial base in the energy, manufacturing, aeronautics, transportation, and health care sectors and is a leading center for building oilfield equipment. It boasts more Fortune 500 companies than any city in the US except New York and is home to many cultural institutions and exhibits—attracting more than 7 million visitors a year to the Houston Museum District and to the city’s world-class shopping, dining and entertainment.
“Combine Houston’s surging economy with its vibrant cultural and recreational draws, and then consider the ever-growing population that provides a virtually consistent tenant base, and you have an unmatched, once-in-a-lifetime buying opportunity offered in an absolute auction setting,” says Mark Troen, Chief Operating Officer of Sheldon Good & Company.
Interested buyers can view the property and units during pre-auction Open Houses on Wednesday, November 10, 17 and December 1 at 10:00 am. The auction will take place on Thursday, December 16th, at the JW Marriott at the Galleria, 5150 Westheimer, Houston, Texas. Registration will begin at 11:00 am, and the auction will start at 12:00 pm.