GRAND PRAIRIE, TX-The 36-year owner of the 86-unit Fox Hollow Apartments has handed it over to a buyer from Los Angeles, breaking a per-unit submarket record for its vintage category with the deal's closing. The fully leased asset has traded for $33,700 per unit and an 8.03% going-in cap rate.

Fox Hollow Apartments, situated on 4.9 acres at 1008 S. Belt Line Rd., bested the local per unit record by roughly $2,000, says Jay Gunn, senior investment adviser with Hendricks & Partners in Dallas. The seller is Skyline Properties of Dallas, which developed the complex in 1971.

Tom Burns, an associate partner in the brokerage firm, says the listing was on the market three weeks when he called James Cohn in L.A., who leads the investment group of buyers, Fox Hollow LLC. His initial offer beat the $2.9-million ask, but a subsequent inspection brought it down to the full list, Burns tells GlobeSt.com.

The brokers say the investment group plans to undertake a renovation, upgrading interiors and the clubhouse in the 12-building complex. Fox Hollow's mix is two- and three-bedroom apartments with 856 sf and 1,035 sf, respectively. The two-bedroom units rent for $735 per month; the three-bedrooms are $835 per month. Devonshire Real Estate & Asset Management Group of Dallas has been hired to oversee the asset, positioned one mile south of Interstate 30.

"It's really a yield play," Gunn explains. "The going-in cap rate is above 8%. It's not a value-add play." But, post-renovation could bring a slight rent hike since its immediate neighbors are getting slightly more than Fox Hollow's rate, he adds.