The limited partnership buyer of record, O'Connor Place LP, bested 10 others for Normandale Place at 8713 S. Normandale St., Jeff Ratliff, executive vice president for AmeriSouth Real Estate Services in Dallas, tells GlobeSt.com. "At the end of the day, the seller went with the local buyer because they had the best chance of making the deal work," he says. "They were the most responsible operator, but not necessarily the highest price."
Normandale Place was built in 1971 as a HUD-subsidized project. The seller's property overseer, Encore Property Management of Dallas, will stay in place for six months to train the new owner in the operation of a seniors project, says Ratliff, the deal's sole broker.
Built in 1971, the complex contains 32 efficiencies, 86 one-bedroom units and 12 two-bedroom apartments. The units of 383 sf, 483 sf and 692 sf have an average rent of $460 per month.
According to Ratliff, the complex, like others in its category, often achieves 2.5% annual rent growth with government approval. "It was purely a cash-flow play," he explains about the sale.
The buyer, turning gain from a multifamily sale, secured a five-year loan with a 30-year amortization at a 5.1% fixed-rate interest through the Dallas office of the New York City-headquartered Citibank. Steve Heldenfelds with Holliday Fenoglio Fowler LP in Dallas negotiated the financing with Citibank's Rocky Rainbolt.
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