The buyer of record, Westmoreland Road Apartments LP, has secured its first, but not its last multifamily asset in Dallas/Fort Worth. At least one other property is under contract, according to Tom Burns, associate partner for Hendricks & Partners in Dallas. He and Jay Gunn, a Hendricks' senior investment adviser, represented the seller, the Strand Co. of Vancouver, BC, which was marking its 10th year as owner of Park Village Apartments at 7575 S. Westmoreland Rd. when it made the pass.
Burns says the 96%-leased complex is poised for a rent increase due to occupancy, condition and the market in general. The going-in plan, he tells GlobeSt.com, is to run it as-is, make moderate improvements to unit interiors and then boost rents. Even the overseer, Mayan Management Co. of Dallas, has been kept in place as has the property name for the 23-year-old Park Village.
The 24-building complex is positioned on 13.9 acres near Interstate 20 and US Hwy. 67. It has one-, two- and three-bedroom units ranging from 582 sf to 1,185 sf. In-place rents are $510 to $875 per month, with 29 detached garages available for an additional fee.
Burns says the buyer, deriving exchange funds from a multifamily sale in Los Angeles, inked the deal with a 10-year, interest-only loan from Credit Suisse First Boston. Key to the conduit financing is the "ability to mezz it up once," he explains, citing the future leverage when it's time to sell. He says the new owner is planning a three- to five-year hold.
The dealmaker says there were two other offers in hand when the L.A. investor put its bid on the table in the third week of marketing. "His offer was so compelling. He had a short inspection period and he was in a 1031," Burns says. "He seemed like the right guy."
The British Columbia-based seller, turning the complex loose at a 7.4% cap rate and a loan defeasance, is disposing of all its US assets, according to Burns. With Park Village gone, it's down to one holding in Atlanta, which conceivably by now is under contract.
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