Gabriel Dekermenjian of Huntington Beach got the 104-unit Pioneer Point at 216 W. Pioneer Parkway for $12,500 per unit primarily because it is 50% occupied and in need of repair, Jeff Dowdle of Marcus & Millichap's Dallas office tells GlobeSt.com. It also didn't hurt that it was bought out of a foreclosure by State Street Bank & Trust Co. of Rockville, MD. "That's not a bad price when you can spruce it up and make it worth $20,000 per unit," he says.
Dowdle confides the previous owner, Moshe Epstein of Arlington, owed about $1.2 million on the 29-year-old complex positioned on nearly 2.8 acres. The deal, Dowdle says, was in escrow just seven days.
Dowdle had the listing for Epstein, who owned the complex for five years, and was looking for a buyer when the bank took control. The broker again secured the listing and found his buyer from the relatives' ranks of a long-time client.
Changes in management as well as the complex's physical changes will deliver significant upside to the new owner, according to Dowdle. The complex is designed with units ranging from one to four bedrooms and a current rent scale of $315 to $750 per month.
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