243 Units Trade on Discounted Price, Upside

DALLAS-With an eye on the upside, a Dallas-Fort Worth homebuilder has acquired a 243-unit multifamily property with 50% occupancy in southeast Dallas. The occupancy and repairs lowered the price significantly from the list to bait a buyer who’s making a return to the sector after a lapse of several years.

Sam Lewis of Phoenix-based Hendricks & Partners’ Dallas office, tells GlobeSt.com that the Casa Verde Apartments at 5880 Peavy Rd. will now undergo “a $1-million-plus rehab.” The complex, part of a portfolio of four offered by W&O Cos. of New York City, went “at a substantial discount off the list price” of slightly more than $4 million, he says.

The portfolio, in an all or one offering, was brought to market several months ago. Lewis says there were lookers, but no serious offers until the owner dropped the price a bit. The homebuilder, whose identity Lewis is guarding, came up with Casa Verde’s winning proposal: cash on the line and a bank loan assumption.