The seller of record, Texas Bay Towne South LP, is funneling its gain into a multifamily property in Louisiana while the buyer of record, Arlington Arbor Terrace LP, of El Cerrito, CA swapped some duplexes in its home state for the Arbor Terrace complex at 1015 W. Arkansas Lane in Arlington, Peter J. Hartnett with Phoenix-based Hendricks & Partners' Dallas office tells GlobeSt.com. He says Arbor Terrace had a one-year run on the market, but the seller eventually got close to what he wanted, locking in a buyer for $70,000 less than the asking price and raising the bar for 1969 product.

The 15-building development, sitting on 5.3 acres, is the California investor's first foray into Texas. The deal closed with a 10-year conduit loan, with about $300,000 earmarked for some upgrades, arranged by the New York City-based PW Funding Inc., according to Hartnett. The seller, which flips assets every two to four years, bought Arbor Terrace in 2000, according to Hartnett.

The class C mix consists of five 320-sf efficiency units; 60 one-bedroom designs ranging from 600 sf to 820 sf; and 78 two-bedroom apartments with 940 sf. The average monthly rent runs 75 cents per sf or $611. "It's a coupon or cash-flow deal," Hartnett says.