DALLAS-A North Texas partnership has gained control of a 312-unit block of workforce housing in an outlying area of southeast Dallas. The eight partners have just closed on a 194-unit complex and are slated to polish off another deal this week with a different seller for abutting units.

First to sell was Woodside Apartments at 13660 CF Hawn Fwy. Up next is the 118-unit Bridle Path Apartments at 13700 CF Hawn Fwy. The economies of scale are obvious, but what isn't so obvious is the double deal reels in two mixes boasting a wide variety of units and prices. “He can cater to any resident who walks in the front door,” says Chris Deuillet, first vice president for CB Richard Ellis in Dallas.

Deuillet tells GlobeSt.com that the dealmaker was the ability to buy side-by-side class C complexes, situated near the Interstate 20-635 junction and just minutes from Downtown Dallas. “The buyer wanted Woodside,” Deuillet says, “and he said if he could get Bridle Path that would be the icing on the cake.” Marcus & Millichap Real Estate Investment Brokerage Services, held onto the Bridle Path listing after Deuillet's move to CBRE, with sale duties passing to Marcus & Millichap associate Nick Fluellen.

Woodside Apartments, listed for $4.28 million, has efficiencies and one- and two-bedroom apartments ranging from 462 sf to 1,000 sf. The mix averages 615 sf. Rents, averaging 73 cents per sf, start at $335 and go to $640 per month. The six-acre project, with 15 garden-style buildings, was built in 1982 and renovated in 2005. Units are individually metered.

Listed for $2.25 million, Bridle Path, built in 1974 on 5.04 acres, is mostly one-bedroom units in an all bills-paid mix ranging from 500-sf efficiencies to a single three-bedroom apartment with 1,089 sf. The unit average is 641 sf. Monthly rents go from $450 to $800 or 84 cents per sf on average.

Deuillet says occupancy increases and renovations are underwriting the upside plans as the new owners nudge the assets' status to class C plus. Woodside historically is 82% leased, came to market at 85% occupancy about six months ago and gained two percentage points by closing time, according to Deuillet. The latest occupancy for Bridle Path wasn't available.

“As the occupancy went up and collections increased, it started to become a deal,” Deuillet says. He credits Woodside's uptick to the climate change in the entry-level, single-family housing market, which is under construction right down the street.

Deuillet says the buyers financed an extra $294,000 to make additional upgrades at Woodside. He suspects the same tact will be applied for the Bridle Path financing. “The property needs even more work,” he says. Imperial Bank of Los Angeles funded the Woodside loan at a 6.5% fixed-rate interest, according to the broker.

Deuillet says Woodside generated a dozen offers. He attributes investment interest to the asset's lock as the largest block of rentals in the pocket, location and per unit price of $22,087. “During the big pitch, if the buyer had the depth, it was always attractive to bring up the property next door,” he adds. “The purchase price was not full list, but it was very aggressive.”

BNC Properties of Del Mar, CA has owned Woodside since June 1998. Deuillet says the seller's sights are set on newer properties in Houston and elsewhere in the Southwest.

Dallas County tax records list Bridle Path's seller as Lucky Pup Enterprises LP of Dallas. It bought the complex in December 2000.

Deuillet says the buyers' general partner from Fort Worth will manage the properties. “A hands-on owner is going to help the properties,” he says, adding work began immediately on Woodside's upgrades.

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