ARLINGTON, TX-King Properties of Miami has acquired a two-asset portfolio in Dallas/Fort Worth, outplaying at least a dozen offers for the $11.2-million class B listing. In scoring the win, the buyer has taken its second multifamily deed in four months in the city.
Key to the hard push to win the deal is the 186-unit Misty Ridge Apartments' positioning at 2300 Misty Ridge Circle in Arlington, which is right beside King's June buy, Ashley Village Apartments at 2713 N. Collins St. The buyer also has scooped up the deed to Riverfall Apartments, a 144-unit complex at 7879 Riverfall Dr. in Dallas. Given the field of buyers and current market conditions, it's a safe bet that the deal was nudging the asking price of IMT Real Estate Group of Sherman Oaks, CA.
The marketing drew several individual offers and portfolio buyers, according to Brian R. Murphy, principal of Apartment Realty Advisors in Dallas. “It just made sense for the smoothness of the transaction to keep them together,” he says.
Murphy says IMT was swayed to sell due to market conditions as rents and occupancies rise across the metro. Misty Ridge was 95% occupied at sale time and Riverfall Apartments, 93%.
“We didn't make it to the call for offers,” Murphy tells GlobeSt.com. “We pre-empted it because the price was so good and the offer was so good.” The deal went full circle in 60 days.
Murphy says King's MO is renovate and raise rents, which is what is occurring at Ashley Village. Misty Ridge's present average monthly rent is $678 while Riverfall is bringing $658. “There's probably a lot of room for growth in the rents,” says Murphy, who partnered with ARA Dallas' founder and principal Brian J. O'Boyle and principal Jeffrey M. Pritchard to hawk the portfolio. King has in-house teams to manage and lease its holdings.
In Arlington, King not only got a next-door neighbor, but managed to expand a footprint near the under-construction Dallas Cowboys' stadium. In Dallas, the buyer got a piece of the action in the Walnut Lane redevelopment pocket, where scraping of hundreds of class C apartments and rebuilding with mixed-use space is underway.
Misty Ridge is a 13-building development on 8.4 acres. Its one- and two-bedroom units range from 544 sf to 1,022 sf.
Riverfall Apartments has nine buildings, including a leasing center, on 3.9 acres. Its mix is one- and two-bedroom units, including townhouses. Units range from 477 sf to 880 sf.
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