(Read more on the multifamily market.)
GRAND PRAIRIE, TX-Up against 14 other offers, Sequoia Real Estate Holdings LP of Northglenn, CO has outplayed the competition for the 304-unit Forum at Grand Prairie with a bid in the neighborhood of its $25.2-million ask. The 89%-leased complex, marking its first birthday and sale, is the TIC buyer's fifth pickup in North Texas.
The Forum at Grand Prairie, a 20.7-acre class A development at 2650 E. Forum Dr., was sold by American Opportunity Housing of San Antonio and Dallas-based Beucler Properties LP. "Most offers were entrepreneurial private capital," Tom Burns, associate partner in Dallas for Phoenix-based Hendricks & Partners, tells GlobeSt.com. "The draw for this property is all the excitement in this area." The gated complex is located near Interstate 20 and the Great Southwest Parkway near Joe Pool Lake and just a few miles south of the under-construction Dallas Cowboys stadium, a $1-billion project, and GloryPark, a proposed support system of high-end residential, retail and office surrounding the NFL stadium.
Burns says Sequoia, a two-year-old TIC player seeded by 1031 exchange investors, made the close with new financing from Toronto-based CIBC. He says the new owner has mapped out a plan for a three- to five-year hold.
According to the marketing flyer, the new owner's upside lies in an average rent that's at least four cents per sf less than its neighbors. The 20-building mix of one-, two- and three-bedroom apartments brings in $585 to $1,015 per month apiece or 89 cents per sf. Units range from 662 sf to 1,150 sf. The project's perks include 45 detached garages and a 1.98-space parking ratio per apartment. The sales team included Michael Miller, associate partner in San Antonio for Hendricks & Partners, and Tom Warren, also an associate partner in the Dallas office.
Sequoia, which has a Dallas office, has an in-house management team to support its acquisitions. The investment group's metroplex assets are Sequoia Courtney Manor Apartment Homes at 9100 Independence Pkwy. in Plano; Sequoia at Frankford Springs at 3702 Frankford Rd. in Dallas; Sequoia Bluffs at Vista Ridge Apartment Homes at 625 E. Vista Ridge Mall Dr. in Lewisville; and Sequoia at Stonebriar at 5200 Town & Country Blvd. in Frisco.
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