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News Article
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Westside apartment complexes sold for $9 million
Three apartment complexes on El Paso’s Westside have been purchased by New York-based NWJ Companies for $9 million.
The properties are the 77-unit Three Fountains complex at 368 Shadow Mountain, the 87-unit Village I complex at 9500 Enterprise and the 72-unit Village II apartments at 140 Shadow Mountain.
They were purchased from the Strathman family and Carolyn Chambers of El Paso.
The company said it will invest another $2 million to upgrade and revitalize the properties, all built around the 1970s.
There are plans to modernize the interiors and make improvements to the common areas and exteriors.
“We are excited to enter the El Paso market with this purchase, and grateful to our lending and investment partners for their continued commitment to our business model in these times of economic uncertainty. We look forward to continuing to add to our portfolio in this market,” said Nickolas Jekogian III, president/CEO of NWJ Companies in a release.
Kunal Chothani of Investment Property Advisors acted as the investment advisor for NWJ Companies, with Summit Capital Partners V, LLC making its fifth investment with NWJ Companies over the past two years as equity investors.
“Fortunately we are still able to obtain financing in a tough environment due to our long track record and underlying fundamentals in our acquisition model,” said David McLain, vice president of NWJ Companies.
“This is an exciting project with a superior location, within walking distance to major retail. We were attracted to the El Paso market because of its excellent fundamentals and potential to become a welcoming, high quality home for residents,” he said.
Jerry Carlson, executive director of the El Paso Apartment Association, said many El Paso apartment complexes are owned by out-of-town companies, and that most hire local management companies to handle day-to-day operations.
And he’s not surprised by the national interest in the El Paso apartment market.
“Everybody knows we’re getting 27,000 soldiers over the next few years,” Carlson said. “We’ve been very busy with inquiries.”
Carslon said with the ongoing credit crisis, there is a risk of money drying up and curbing some development in the market.
But apartment occupancy rates continue to be solid.
“We just did a survey as of Sept. 20, and found occupancy at 93.4 percent,” he said. “So there’s basically 6 percent and that can tighten up in a short period of time.”
Carslon said he expects more out-of-town buyers.
Comments or questions about this story? E-mail news@elpasoinc.com
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