[Trae]

$41M-Plus Buy Nets 264 Units for Condo Plan
By Alex Finkelstein
(To read more on the multifamily market, click here.)

GALVESTON, TX-Spotting a niche for condominium housing near Scholes Field Airport, JMG Realty Co. of Atlanta has acquired the one-year-old, 264-unit Club of the Isle resort-style apartment complex for $41.3 million or $156,400 per unit. The seller was Houston-based Chaparral Group LLC.

"JMG plans to fill a much-needed niche on the island by converting the property to for-sale condominiums in the medium-price range," says Bill Miller, managing director in Dallas for Holliday Fenoglio Fowler LP. "Galveston's economy has grown tremendously in the past few years and is expected to set new records for 2006."

Miller says Club of the Isle "represents an excellent opportunity for the buyer to take advantage of current pent-up demand for condominium units on the island." HFF director Robert Casas worked with Miller in representing the seller.

The three-building property has seven different one-, two- and three-bedroom floor plans, averaging 982 sf. The 15-acre site is at 3433 Cove View Blvd. near the Scholes Field Airport and Galveston Island Municipal Golf Course in the Campeche Cove subdivision.

Community amenities include a pool, sand volleyball court, golf putting area, playground, fitness center, massage room and entertainment center. HFF's Miller says the buildings were built to hurricane specifications and rated to withstand wind gusts of up to 140 miles per hour.