William Scott and David Minear, turning around 1031 Exchange funds, secured a $2.3-million loan to acquire the 288 Westmoreland St. property. James Mayfield, director for Arbor Commercial Mortgage LLC of Uniondale, NY, provided the financing in a 10-year vehicle with a 30-year amortization and a 6.53% fixed-rate interest. The lender processed the loan through Fannie Mae's 3MaxExpress product line. Interurban Mortgage Corp. of Denver brought the deal to Arbor, which had its Dallas office handle the underwriting.

Mayfield tells GlobeSt.com that the seller was HK Capital LLC, a locally based owner of investment-grade properties. He says the seller added new appliances and hardwood floors shortly before the 1960s-era building hit the market. The complex is a mix of one- and two-bedroom apartments with rents ranging from $550 to $725 per month. Occupancy at sale time was 94.5%, according to Mayfield.

Mayfield says the new owners will make a few minor upgrades, but the complex overall was in good condition at sale time. The Northern California investors, he adds, are planning a long-term hold for the cash flow on an asset in a neighborhood in high demand due to its proximity to the downtown and upscale River Oaks, where upscale, boutique shops and multi-million-dollar homes make up the landscape.