PLANO, TX-BES Acquisitions LLC has expanded its Dallas-Fort Worth portfolio by purchasing Tribeca Apartments, a 398-unit property. The class A asset was acquired for an undisclosed amount from developer, Dallas-based Zale Corson Group.
BES Acquisitions was one of 10 companies interested in acquiring the property, which is located at the southwest corner of Ohio Drive and McDermott Road. “There was a lot of interest in the property, and I think that was because of the lack of inventory and all the funds available on the sidelines,” says Charlie Corson, principal of Zale Corson Group.
The developer tapped Charles Cirar and Mark Stymiest of CBRE to market the property, which was listed without an asking price. Local experts say class A properties are trading at $115,000 to $130,000 per unit. Using those metrics, Tribeca Apartments sold for $45 million to $52 million.
Corson tells GlobeSt. that Zale Corson Group decided to sell the asset after hearing attending an apartment conference earlier this year. “A question was posed asking how many people would be buying at some point in 2010, and there were a huge number of hands that went up,” he recalls. “We learned there was a dearth of class A properties available for acquisition.”
BES Acquisitions, which is a subsidiary of Sherman Residential of Chicago, not only made the highest offer, but also provided the seller with the highest level of confidence it would be able to close the deal, Corson says. The firm owns five other properties across the Metroplex.
At the time of purchase, Tribeca Apartments was 97% occupied with monthly rents of $1.20 per square foot. Developed in 2008, the property offers a variety of housing types including mid-rise, townhome, loft and traditional garden-style units.
It features eight floorplans with an average unit size of 912 square feet. Units offers custom features including granite countertops, custom maple cabinets, stainless steel appliances, hardwood style flooring, walk-in closets, deep-soaking oval tubs and separate showers.
Corson says Zale Corson Group will use the proceeds from the sale of Tribeca Apartments to finance the construction of a 232-unit apartment project next door. Dubbed The Encore, the project is slated to break ground in January 2011.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
