IRVING, TX-Atlanta-based Miles Properties Inc., closing out a five-year hold, has sold the 558-unit Regal Parc to a tenants-in-common group from Cerritos, CA. The 92%-leased complex was on the market for $26.5 million.

"The current sale achieved a price that was one of the leading sale prices in the submarket for this vintage of product," Tom Burns, associate partner for Hendricks & Partners in Dallas, tells GlobeSt.com. Confidentiality agreements have the final price under lock and key for the class B-minus property at 2346 N. MacArthur Blvd., but the deal included a $23.5-million loan assumption from Bank of America. There were four years left on the loan term, which bears a 5.69% fixed-rate interest.

Burns, teaming with Hendricks' senior investment adviser Jay Gunn, had six offers from would-be buyers in Arizona, California and Michigan after the listing hit the streets. Burns says the highest offer came from TIC players: BH Regal Parc LLC and HB Regal Parc LLC, represented by Bruce Patel of Dabu Hospitality Inc. of Irving.

Miles Properties sold Regal Parc at a 5.5% cap rate. "Their game plan is a three- to five-year hold pattern and they executed it pretty good," Burns says. "They bought it, fixed it up, tuned it up and put good debt on it. It's almost unheard of to get this kind of price for this vintage."

The 48-building complex, built in stages from 1964 to 1969, sits on nearly 27.1 acres with frontage along one of Irving's primary thoroughfares and about one mile from the Las Colinas boundary. The units range from a 550-sf efficiency to a 1,422-sf townhouse, with the average factoring out to 985 sf. The 74-cents per sf rents go from $450 to $810 per month.

To further sweeten the deal, the asset came with a commercial tenant: Nationwide Insurance Co. In November 2005, the firm inked a three-year lease for the former leasing office, a 1,132-sf freestanding building fronting MacArthur Boulevard.