MCG Willowbend Apartments LLC bought the four-building complex at 1407 W. Shady Grove Rd. from IB Holdings LLC of Coral Gables, FL. The new owner has jumped into immediate repairs, ticketing $300,000 for the work, to meet City of Irving requirements for the 86%-leased asset, Peter J. Hartnett, associate partner in Dallas for Phoenix-based Hendricks & Partners, tells GlobeSt.com.
To make the close, Hartnett says the received "gave him 100% financing" at a 6.8% fixed-rate interest and prepayment flexibility. The buyer put $300,000 into escrow to cover the repair bill, according to the deal's sole broker.
Willowbend Apartments, sitting on 2.1 acres, is a mix of 50 two-bedroom units and 10 one-bedrooms. The larger units, each 756 sf, have monthly rents of $647 while the 558-sf one-bedroom apartments are collecting $551 apiece each month.
Hartnett says underlying upside lies in the units' sub-metering, which has been done and waiting for hookup. The seller's preference was to keep rents as all-bills paid, but Hartnett says that can easily be changed.
Built in 1965, Willowbend was renovated in 2004. Under the new regime, Hartnett says all roofs will be replaced and other exterior changes made.
Additional upside lies in its location: a half block south of Lubbock, TX-based McDougal Cos.' massive redevelopment area In addition, Hartnett points out, Willowbend's submarket showed a 3.9% rent gain in the past year. From all indications, he says the buyer's plan is fix and hold for "three to four years."
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