The 1960s-era property, Shadow Creek Apartments, had a $5.8 million mortgage on it when the Fannie Mae foreclosed, but sold in the mid $2 million range, according to Rich Mazel, director of acquisitions for Manhattan Beach, Calif.-based Main Street Partners & Associates.

Mazel tells GlobeSt. that the private equity fund was one of 12 investors that were interested in Shadow Creek Apartments. The class C property was listed by Chris Deuillet and Nita Stewart of CB Richard Ellis' Dallas office.

Situated on nearly nine acres at 311 S. Industrial Blvd., Shadow Creek Apartments is currently 60 percent occupied. It offers a mix of one, two, and three-bedroom units that range from 648 square feet to 2,860 square feet.

Mazel says Main Street Partners & Associates will invest $500, 000 to $1 million to improve the property. Additionally, the firm has employed Southlake, TX-based Myan Management to handle leasing and management for the property.

"We'll make some improvements, lease it up, and probably hold the property for three to five years," Mazel says, adding that the investment will likely generate an IRR in the high teens.

With the acquisition of Shadow Creek Apartments, Main Street Partners & Associates now owns more than 450 units in the Metroplex. Mazel says the firm expects to close additional acquisitions later this year.

"In general, we're more bullish on places like DFW where valuations didn't go crazy and job and population growth is strong," Mazel notes.