DALLAS-Advenir has jumped into a $1.8-million overhaul of the 280-unit Heights of Lake Highlands after paying close to the $12.3-million ask for the deed. The class B-minus complex, en route to a B plus ranking, was 92% filled at sale time.
The acquisition of 9842 Audelia Rd. is the second in Dallas/Fort Worth for the Aventura, FL-based Advenir's plan to gather more than 4,000 units in the metro. On closing day, the first change was the name, Advenir @ North Park, as plans flew into action for the top-to-bottom renovation. “We started on Day 1 and hope to be done in six to 12 months,” says Jeff Riley, the buyer's property analyst. “We're hoping with the improvements that we'll take it to the next level. We'll make it a B plus in what we think will be an A area.”
Riley says the bulk of the cap-ex will go into interiors of the 1970s-era units, a mix of one-, two- and three-bedroom apartments and townhouses. Units average 1,017 sf; rent averages $750 per month. “We will create value and whether or not rents go up with it is a function of the market,” he tells GlobeSt.com. Other work to be done is the clubhouse and landscaping for the 14-acre complex.
Advenir @ North Park's location was the allure since it's one block from the under-construction $300-million Lake Highlands Town Center and part of the Richardson Independent School District, which was as much a selling point for the buyer as it is residents, according to Riley. The town center's developer is scraping hundreds of apartments to make way for the mixed-use project. “They knocked down the competing supply,” he points out. “It's the right place at the right time.”
The Holliday Fenoglio Fowler LP team of director Roberto Casas and managing director Bill Miller were marketing the holding on a free-and-clear basis for Virtu Investments LLC of Carlsbad, CA. Tax records show the seller acquired the complex in February 2006 from its long-time owner, TVO Real Estate Corp. of Chicago. Last May, Virtu also sold another repositioned short-term hold, the 528-unit Bella Vida at Coyote Ridge Apartments at 4253 Hunt Dr. in Carrollton.
Private buyer Advenir's acquisition strategy calls for two- to five-year holds. In fall 2006, Advenir bought a 948-unit complex at 2804 Beltline Rd. in Garland, dubbing it Advenir at Town Centre and undertaking an extensive renovation. Since then, it's also acquired two multifamily properties in San Antonio. And at month's end, it will pick up the 207-unit Sunset Terrace Apartments along Forest Lane in Dallas. Incentives to buy are based on job and population growths and market fundamentals. “We'd like to acquire in Texas for several years,” Riley adds. “We're avoiding Houston because there are too many unknowns.”
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