Cameron Creek, situated on 20 acres at 5209 Bryant Irvin Rd., was 89% leased when Dallas-based Trivest Residential sold it. "Because Trivest did a good job of maintaining it, the majority of rehab dollars is going to value-add upgrades," says James D. D'Argenio, acquisitions manager in Texas for Irvine-based Bascom. He tells GlobeSt.com that roughly $3 million or $6,900 per unit has been earmarked to renovate unit interiors.
D'Argenio says the value-add plan is projected to yield an extra $70 per unit per month when the work's done on the 22-year-old complex, with the goal to bump it to a class A-minus status. Monthly rents now average $655 for the mix of one-, two- and three-bedroom apartments, ranging from 698 sf to 1,495 sf. In comparison, D'Argenio says its class A neighbors' average per unit rent is $790 per month.
"This is a true value-add story," D'Argenio stresses, adding the plan is "to reposition the asset and provide residents with a competitive product at a discount compared to the neighboring properties." He points out that Cameron Creek's amenity package is comparable to its neighbors, with the "same frontage and leasing window." Pinnacle Management Co. of Dallas has taken over leasing and management duties.
Trivest bought Cameron Creek in August 2002 from Archon Group of Irving, TX for more than $18 million. Its proximity to Lockheed Martin's local plant and more than one million sf of retail were its drawing card then as it is now. "The submarket is strong and with all the great things going on in Fort Worth, it's a great place to be," D'Argenio says.
D'Argenio sourced and managed the transaction while Cross Atlantic's point men were Dustin Williamson and Paul Steinhardt. John Brownlee and Travis Anderson with Holliday Fenoglio Fowler LP arranged financing through Norwalk, CT-based GE Real Estate, which had Lance Wright and Bart Mills working out its lending terms. D'Argenio says the financing has a three-year term with one 24-month extension, fixed-rate interest and 73% loan-to-cost ratio. Apartment Realty Advisors' Dallas team of Brian Murphy, Jordan Cortez and Chris Epp represented Trivest.
Start to finish, D'Argenio says the acquisition took three months to lock down. "There were a couple little hiccups, but we all worked together and pushed it through," he says. The anticipated hold is two to three years.
The Bascom-Cross partnership, seeded by $20 million of equity, has banked four deeds in Texas in the past 18 months. "They are great partners. We'd love to keep working with them," he says.
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