THE TAKARA-SO APARTMENTS WON’T BE GOING AWAY JUST YET 
Inner Loop property watchers: As other Montrose apartment complexes are knocked down and redeveloped left and right, do your thoughts turn occasionally to the Takara-So? If so, you are not alone: The 77-unit 2-story apartments at 1919 W. Main St., occupying the entire 1.22-acre block also bounded by McDuffie, Hazard, and Colquitt, was sold back in May in an off-market transaction. The complex that once belonged in the portfolio of swindler Allen Stanford is now the property of a group headed by Southern California firm Apartment Income Investors. A cached version of a memo for the investment posted online in advance of the sale envisioned renting out and holding the property for 3 to 5 years before selling it to investors or a developer, and identifies the price as $5.51 million. Photo: Takara-So Apartments
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If the memo is true about sitting on the Takara-So property for 3-5 years, I think that’s a wise decision. Some other developers have been acquiring land, but taking a wait-and-see attitude before building. There are still a lot of “luxury” apartments under construction inside the Loop, and if they all open at about the same time, there could be a glut of expensive units on the market. I can’t help but wonder if a rental price correction will follow. A lot of people who live inside the Loop now can’t afford those rents! Houston has always had a blind spot about overbuilding apartment complexes, and I think we’re dangerously close to that now.
Sellers left money on the table on this one. Good luck to the new out of state owners – welcome to the City of Houston and by the way might want to start shopping it now.
I saw “Apartment Income Investors” and “Southern California Firm” and already I don’t like it. I looked at their website and just confirmed what I suspected: AII is all about return on investment for its investors. If a property is making money, I suspect they assume all is well. I wonder if it would matter to them if if there are severe electrical or structural deficiencies, or people dealing drugs or getting shot on the property. I wonder if, like so many investor-landlords I’ve seen, they would just play stupid and hide behind lawyers
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I guess people will be happy that they’re going to leave the apartments standing and there will be some “affordable” units left in Montrose – at least for the time being. But I’ve seen what the wrong owner can do to an apartment complex. If I was a neighbor or a tenant, I would Apartment Income Investors very closely.
Not that AII would be any worse than R Allen Stanford of course….
Having been formerly red, and now green, then maybe– and sticking to an additive demure– soon a fresh paint job: a blue… Sky Blue?
If it were me, I’d be shopping the land to developers or trying to find money to develop it myself. Get while the getting’s good. It won’t last forever.
Takara-So should be a cash cow.
Speaking of Takara-So, does anybody know what is going on right now in the 4200 block of McDuffie?
For at least and hour and a half, and probably longer, the whole block, which is catty corner and to the southwest of Takara-So, has been cordoned off by lots of firetrucks.
The fire guys couldn’t tell the onlookers what was up, at least not when I was there..
Stretchers, lights flashing, no sirens, lots of trucks, lots of personnel, lights flashing………..
Anybody?
Takara-so-ugly but it does serve it’s purpose. Surprised Cody hasn’t bought this one yet.. :)
AII is all about return on investment for its investors.
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perish the thought!
Back in the day looking for a cheap apartment in the late ’80s, the beehived chain smoking apartment manager of Sleepy Hollow (where Gables Richmond is now) referred me to Takara-So She said “Hun go over there and see Miss Jimmie”. I thought to myself, oh Good Lord NO!
Cm: I tried for years. It was always just a bit too expensive relative to other options. Then once I’d agree to the price, it would go up again.
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The people that bought it didn’t buy it based on based on strong operational returns as they could do much better with other options. In fact, I don’t think anyone is buying multifamily in Montrose to get a return. Montrose is home to trophy properties now. People buy them because they like the area and want something here. The returns are secondary. And the pricing shows it.
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Price, and the city working to get people to sell to devs via various policies made Montrose not a place for me anymore. I’m all about the east side of innerloop :)
Harold, one of my (former) neighbors had an electrical fire in her townhouse. Fortunately everybody is okay.
@roadchick I believe luxury apartments are being overbuilt as well, however you are the first person besides me that believes that. I have heard that Houstons Growth is estimated to continue for the next 7-12 years as long as oil price remain in tack. Can you elaborate on your reasons why you think the luxury apartments are overbuilt and too expensive.