LEWISVILLE, TX-MC Companies has acquired Park Timbers Apartments, a 230-unit, class B apartment community, for an undisclosed amount. The 2009 assessed value of the property was $9.4 million, according to the Denton County Appraisal District. The Tucson-based buyer assumed mortgage debt serviced by Freddie Mac.
Park Timbers Apartments is the firm’s third multifamily purchase in the Metroplex since 2008. “Prior to 2008, we had been restricting our investments to Arizona and Nevada, but because of pricing and the deterioration of the local economies, we start to look at Texas,” says Ross McCallister, principal of Tucson-based MC Companies.
McCallister says Dallas-Fort Worth is particularly attractive because of its job growth, stable housing market and diverse economy. The biggest drawback is the risk of competitive projects because of the market’s low barriers to entry. “We like the submarkets along the North Dallas Corridor – Plano, Lewisville, Carrollton and Frisco,” he tells GlobeSt. “We feel those areas can compete.”
Park Timbers Apartments received a significant amount of investor interest. “We had more than 150 registered buyers and more than a dozen offers, with the majority qualified, experienced investors,” says Lamont Rattler, a multifamily specialist with Cushman &Wakefield’s capital markets group.
Rattler was the lead broker on the transaction, representing the seller, Dallas-based American Equity Partners Inc., along with Stephannie Mower, who leads the C&W’s capital markets group. Mart Martindale and David Ellis, also with C&W, participated in the deal.
McCallister says MC Companies won the deal because of its extensive experience in managing multifamily assets in the Metroplex. The firm manages more than 4,500 units in the area, not including Park Timbers Apartments.
Located at 1902 South Business State Highway 121 between Lake Lewisville and DFW Airport, the two-story, garden-style complex was built in 1986. Ten floor plans include 1, 2 and 3 bedroom options. The community offers two pools, a spa, exercise room, family play area and covered parking.
The community, which was 88% occupied at closing, will be renamed The Place at Park Timbers in keeping with MC Companies’ branding strategy. MC Residential of Texas will manage the community.
The new owner plans to update the units and will spend $500,000 to upgrade kitchens, add new appliances and install a washer/dryer in every unit. It will also replace fitness equipment and repair the deck near the pool. McCallister says the firm will continue to look for investment opportunities in Texas, as well as Arizona, Colorado, Oklahoma, Nevada and Utah.
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