DALLAS-A joint venture partnership comprised of Knightvest Capital and Panther Transaction Group has acquired a 158-unit multifamily complex out of foreclosure.
The venture paid a little less than $2.5 million for August Park Apartments, which previously had a $5 million mortgage with Fannie Mae. The GSE hired Taylor Snoddy of Transwestern’s local office to market the property.
August Park Apartments is the first investment for the venture and the third apartment buy for Knightvest Capital in the past nine months, according to KC Kronbach, a principal with Knightvest Capital, a local investment firm that is targeting distressed multifamily assets in Texas. Fort Worth-based Panther Transaction Group is headed by Tommy Pigg and Doug Kincaid.
Located at 2808 N. St. Augustine Rd. in the Pleasant Grove submarket, August Park Apartments is a class B asset in a class C area, Kronbach says. “We like the Pleasant Grove submarket,” he tells GlobeSt, adding that the firm has found success with it value-added purchase of a 304-unit complex located just around the corner.
That property, Mira Flores (formerly known as Bruton Oaks) was 65% occupied when the firm acquired it last year, Kronbach notes. Now its occupancy is in the mid-80% range.
Built in 1986, August Park Apartments offers a unit mix of one- and two-bedroom units that lease for an average of $571 per month. At the time of acquisition, the property was 65% occupied.
“This is a value-added opportunity, and we’re coming in with a capital budget to upgrade the property,” Kronbach says. The firm will spend $300,000 to improve the unit interiors including new fixtures and flooring.
With the addition of August Park Apartments, Knightvest Capital now owns and manages seven properties totaling roughly 750 multifamily units in the Metroplex.
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