The contract for the 16.7-acre complex at 2001 Golden Triangle Blvd. went into place with the former Triple Net Properties Inc. as the buyer, but its merger with Grubb & Ellis Co. came to fruition before the multifamily purchase could get done, according to Tom Warren, a partner of Phoenix-based Hendricks & Partners. The Dallas-based broker says lenders delayed the closing by re-trading loan terms although "there was no hair" on the deal itself.
"Triple Net passed through large sums of earnest money to keep the deal going," Warren tells GlobeSt.com, citing the asset's quality and location as the buyer's motivation to keep wrestling with lenders to pin the deed. Throughout the lengthy escrow, he says occupancy stayed above 94% and often hit 96%.
Christopher Thomson, a Hendricks & Partners' senior investment adviser in Dallas, says the brokerage team had targeted tenant-in-common circles as the most likely to produce a buyer. "We really thought a TIC buyer would be the way to fully realize the value of the asset," he says, pointing to its location and quality. "You could see the writing on the wall."
Thomson says the lay of the land is the Enclave has a two-lane road leading to it, but that's about to be widened to six. The neighborhood also is getting a new 24-Hour Fitness Center and school. "It's ahead of the curve on location," he adds. The Hendricks & Partners' team was led by partner James Hearn in Houston and included senior investment adviser Ed Cummins, investment adviser Ryan Terrell and associates Clint Duncan and Heather Moos in addition to Warren and Thomson.
[IMGCAP(2)]Integrated Construction & Development Co. of Southlake developed the 29-building complex in 2006. The "Big House" design, a trademark of Dallas-based Humphreys & Partners Architects LP, has one-, two-, three- and four-bedroom units, averaging 1,046 sf. The monthly rents start at $750 and go up to $1,650. There are 193 one- and two-vehicle garages.
The Enclave is situated 15 miles north of Downtown Fort Worth and 25 miles northwest of the Dallas CBD. There are 6,597 rental units in the suburb, where rent rose 3.3% in the past year to hit an average of $850 per month, according to statistics from Carrollton, TX-based M/PF YieldStar Inc.
Warren says offers continued to pour in for the complex long after it was under contract because of the deal's dynamics in cap rate and location. "We had a ton of interest, but it was under contract," he says.
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