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BROWNSVILLE, TX-The Lindahl Group added to its growing Gulf Coast states portfolio, buying 677 units in four separate transactions. The Boston-based buyer has picked up class A and B assets in payouts ranging from $28,000 to $68,000 per unit.
The complexes in Brownsville and Beaumont, TX and Shreveport, LA fit both sides of Lindahl's acquisition plan, says Justin Meszaros, the company's vice president and principal. On the one side are the value-add projects, such as the 32-year-old, class B, 185-unit Southfield Apartments at 109 Southfield Rd. in Shreveport, sold by a local company, Kings Highway Associates. The other value-adds are a pair of class B assets in Beaumont: the 152-unit Cardinal Square Apartments at 1280 Saxe St. and 152-unit Autumn Cove Apartments, approximately eight miles northwest, at 3190 Eastex Fwy. The early 1980s-era complexes were sold by Virtu Investments of San Francisco.
Then there is Lindahl's other investment plan, which involves acquiring cash-flowing assets like the class A, 168-unit La Mansion Apartments at 2700 FM 802 in Brownsville. “Whenever we think we can get yields on a class A deal, we'll do it,” Meszaros tells GlobeSt.com about 99%-leased purchase. “For every renovation project we buy, we like three or four cash flow deals to offset it. We don't want to be too heavy on the rehabs.”
However, the other assets won't need a lot of upgrades. Meszaros says the 93%-occupied Southfield is in good shape while Cardinal Square, at 94% occupancy, will get new siding and be repainted. The 98%-occupied Autumn Cove will be renamed Ashley Place; and it too will undergo re-siding and re-painting. Lindahl will manage all the assets.
Even with the closing of the three assets, Lindahl is planning more before year's end. Meszaros says that the company most likely will buy more complexes in Brownsville and possibly Shreveport plus make its first buy in Laredo.
Lindahl was self-represented on all four transactions. Apartment Realty Advisors' Dallas office represented the seller of Southfield Apartments while ARA's Austin office worked the Beaumont and Brownsville deals. Financing for the acquisitions was arranged by Jason Rice, director at Quantum First Capital LP in Dallas.
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