The seller of Merry Oak Apartments at 150 Rustleaf Dr. was Rustleaf Capital Funding Ltd., part of Gilroy, CA-based Cunningham Capital. The 49-building complex is situated in the southwest submarket close to the former Kelly Air Force Base.
NorthMarq Capital Inc. arranged acquisition financing of $3.72 million for the buyer. NorthMarq's Paul Brighton, vice president and senior producer, and Alison Eby of the company's Dallas office, arranged the 10-year, fixed-rate financing through Lehman Brothers. The interest rate was less than 6%.
Brighton says the buyer is a CO-based investor. "He wants to hold it for the long term," Brighton tells GlobeSt.com. Merry Oak Apartments, built in the 1960s, is more than 95% occupied. The new owner plans to make minor cosmetic changes.
The sale was part of Cunningham Capital's divestment of more than 30 properties in the Southwest, Southeast and eastern US. The group is looking to make acquisitions in the Midwest, West and Pacific Northwest.
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