Jerry L. Hess, acquisitions manager for Bascom Group's Dallasteam, says location and upside prompted the deal with DeerfieldTownhomes LP of San Antonio. The 10-year-old complex at 1947Larkspur Dr. is positioned on nine acres in the far northsubmarket, where comparable properties are trading for $60,000 to$65,000 per door. The equity partner is Austin-based Cross AtlanticInvestors LLC, the US investment arm of Deutsche Structured FinanceGmbH in Germany.

"There is very little well-located townhouse product in themarket, which was one of the things that initially attracted us toLegacy," Hess says. "When we dug into it, we saw that rental ratesdid not reflect the value of the attached garages, washer-dryerconnections and very large average unit size, which reallydifferentiated it from comps in the market."

The 96%-leased complex has one-, two- and three-bedroomapartments ranging from 732 sf to 1,224 sf. Rents are between $665and $1,040 per month. Hess says renovations will begin in March andbe completed within 24 months.