Florida-based Avesta Communities LLC has closed on the 426-unit Chateaux Dijon Apartments in an off-market transaction topping $45 million to add one of the largest commercial tracts in Houston's prestigious Galleria/Uptown Park District to its portfolio.

The class A project is set on 10.8 acres at 5331 Beverly Hill St., a close-in community within walking distance of the three-million-sf Galleria Mall. Chateaux Dijon was 90% leased at sale time, roughly three points higher than the submarket's current average.

Avesta Communities has had its eyes on the Galleria submarket about two years. The buyer's broker, Glenn Dickerson of locally based NewQuest Properties, sourced the deal and negotiated directly with the seller, FHB Beverly Hill LP, for its last holding in the city.

"This was a one-time opportunity. This is one of the few tracts of that size in close proximity to the Galleria," Dickerson says. "It was an opportunistic acquisition."

Chateaux Dijon is a mix of one-, two-, three- and four-bedroom apartments, ranging from 510 sf to 1,380 sf. The French Chateau-designed complex boasts grounds with majestic oak canopies, gaslight-style street lamps, five swimming pools, manicured courtyards and pet-friendly areas, including a private bark park and dog-washing station. Tenant amenities feature an Amazon Package concierge, cyber café, barbecue/picnic areas, 24/7 fitness center, WiFi hotspot, business center, conference room and coffee/tea bar. The contemporary-styled units have balconies, patios, vaulted ceilings, walk-in closets, stainless-steel appliances, hardwood floors and granite countertops. In 2016, the seller completed an extensive renovation of the property, developed in the mid-1960s.

"Chateau Dijon is a valuable piece of property in an area commanding $125 to $300 per sf. The seller knew my client was a credible buyer with a good reputation for closing," Dickerson says, "and with it being his only holding in Houston, the motivation to sell was strong."

Chateau Dijon is Avesta's third acquisition in the Houston metro. The Avesta portfolio contains  more than 12,000 units in Florida and Texas. Avesta will self-manage Chateau Dijon, keeping the property's name intact.

Dickerson is scouting the market for additional acquisition opportunities for Avesta. "NewQuest typically doesn't venture into multifamily, but I like to move across all categories of commercial real estate. It allows me to keep a pulse on the market overall," he adds.

SOUTH TEXAS SALE

Avesta Communities LLC has purchased the 426-unit Chateaux Dijon Apartments on 10.8 acres at 5331 Beverlyhill St., Houston, from FHB Beverly Hill LP. Glenn Dickerson of NewQuest Properties represented the buyer in the direct deal.

SOUTH TEXAS LEASE

Fondren Fish & Pet has renewed 2,269 sf of retail space in Fondren Southwest Village, located at the intersection of W. Bellfort Avenue and Fondren Road, Houston. Austen Baldridge and Brad Elmore of NewQuest Properties represented the landlord, Garrison Fondren LLC.

CENTRAL TEXAS LEASE

Factory Mattress Sales has leased 3,850 sf of retail space in Stone Hill Town Center, located at the intersection of TX 130 and 145, Pflugerville, from NewQuest Properties. Josh Friedlander and Rebecca Le of NewQuest Properties represented the landlord. Adam Zimel of Endeavor Real Estate Group represented the tenant.