MIDLAND, Texas – The Related Cos.’ Related Real Estate Recovery Fund has purchased 3,128 apartment units, primarily located in the Permian Basin of West Texas.
An affiliate of Pivotal Group sold the 3,128 apartment units – a 21-apartment community portfolio located in Midland, Odessa and Longview, Texas. The portfolio has been extensively renovated since it was acquired a little more than two years ago.
With oil and gas activity surging, the Midland/Odessa region has 3.2 percent unemployment rate and a 97 percent multifamily occupancy rate, according to CBRE, which handled the sale. The advancement of hydraulic fracturing or fracking has given rebirth to the Permian Basin, one of the richest petroleum plays in the world.
“With the exception of the past five years, the Midland/Odessa region experienced an extremely limited amount of new construction and capital upgrade investment since mid-1980s, creating a gap in the marketplace.” Justin Metz, managing principal of Related Fund Management, said in the release. “We seek to be a premier provider of institutional-quality rental housing in the area to meet the growing demand.”
The seller was an affiliate of Pivotal Group has sold 3,128 apartment units as part of a 21-apartment community portfolio located mostly in Midland, Odessa in West Texas along with one apartment complex Longview, in east Texas. The portfolio has been extensively renovated since it was acquired a little more than two years ago.
“Our strategy of investing in markets with strong economic fundamentals and adding value through thoughtful renovation worked well for us here,” said Francis Najafi, CEO of Pivotal Group.
“We are looking for similar opportunities in other parts of the U.S.,” added Scott Knauer, Managing Director of Pivotal Group.
Orion Residential provided property and construction management services for Pivotal.
Based in Phoenix, Arizona, Pivotal Group is one of the nation’s leading investment companies with a primary concentration on private equity and real estate investment and development.