In 2002, Beverly Hills, CA-based Kennedy-Wilson International used the complex at 4909 Haverwood Lane, which is assessed at $19 million, as its first major acquisition in Texas for a multifamily fund. The 25.9-acre complex reportedly brought upward of $25 million six years ago following a market run at $37 million. The dissolution of a partnership subsequently pushed the asset into the portfolio of Austin-based CKW Gleneagles.
This time, the 95%-leased Gleneagles hit the market without an ask in an all-cash, value-add scenario. Mission Residential was up against 23 offers for the 43-building asset, according to Brian Murphy with Atlanta-based Apartment Realty Advisors in Dallas. The deal went full circle within 60 days.
"Mission Residential wasn't the highest bidder, but they were a proven buyer. They had a track record with us and the seller and was willing to put non-refundable hard money at the execution of the contract," Murphy tells GlobeSt.com. "This brought out what we were expecting in offers and pricing. We had a Who's Who of buyers."
Gleneagles consists of one- and two-bedroom apartments, some with garages and sunrooms, in 34 residential buildings. Other buildings include cabanas, clubhouse and amenity-related services. Units range from 700 sf to 1,205 sf, with the average monthly rent resting at 94 cents per sf.
"With half of this being built in the 1990s and its strong occupancy, there's tremendous upside," Murphy explains. "It's a good value-add story in a great location." The ARA sales team included Brian O'Boyle Sr., Brian J. O'Boyle Jr. and Jerry Lamm.
Gleneagles is positioned close to the intersection of the President George Bush Turnpike and Dallas North Tollway. Word is locally based Billingsley Co. is planning on developing class A apartments on the southeast quadrant. In addition, Gleneagles abuts a city park and is close to retail and office hubs.
Murphy says the seller delivered a well-maintained complex, allowing the buyer to focus on minor upgrades as units turn. The value-add plan will include upgrades to the leasing office and clubhouse, he adds. The 326-unit phase one was completed in 1986. Phase two, with 264 units, came on line in 1996.
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