David Ward and Jason Leeds, San Gabriel partners and former executives with JPI, acquired the 19-year-old asset at 6525 Glenview Dr. from a limited liability corporation based in Omaha. Ward tells GlobeSt.com that the 92%-leased Diamond Ridge never had a chance to hit the market, but rather was acquired as a result of a review of possible purchases with the seller's broker, Jeff Price of the Apartment Group in Dallas.

The mix of one- and two-bedroom apartments, averaging 900 sf, carries an effective rent of 71 cents per sf or close to submarket comparables. Ward says the gain will come from "a moderate repositioning" by putting $1,000 per unit into updates, bringing in new management and raising rent 4% to 5% per year. Greystar Management Co. of New York City will manage the 21-building, gated complex positioned on 16.5 acres.

"I feel like I bought it right so I don't have to get huge rent increases," Ward says of a complex that's already undergone about $1 million in improvements in the last 18 months. The buy side is favoring class B properties in the $10-million to $15-million range.