The three-building complex takes up four acres at 2732 W.Colorado Blvd. The new owner, who also has properties in upscaleOak Lawn, "saw people were talking about that area and thought itwas a good area to buy in," Sam Pettigrew, vice president ofCantrell Cos. in Dallas, tells GlobeSt.com. "He will hold it forawhile and see what happens to the area." He adds the buyer isdigging in for a three- to five-year hold.

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The deal sweetener is nearby apartment projects already areearmarked as teardowns. In a true value-add play for the presentand future, Pettigrew says the new owner is planning to push rents$20 per month across the board since the in-place rates are belowmarket. One-bedroom units are $630 per month; two-bedrooms, $730.Units range from 570 sf to 960 sf in four floor plans.

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Harshaw Asset Management Co. of Dallas has owned the 19-year-oldcomplex since 1989. Harshaw owns other multifamily properties, butit's not its core business. "He thought it was a good time sell andfocus on the mobile home business," Pettigrew says. He and Cantrellsenior associate Elliott Carpenter partnered on the sale.

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The tract size and list price work out to $18.37 per sf for thedirt, which has a hard corner positioning and flanked by retail andother multifamily complexes. Recently, Dallas City Council createdtwo new tax increment financing districts in the neighborhood,including Fort Worth Avenue, which is one block away.

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About 70 miles northeast, Pettigrew sold another class Ccomplex, the 129-unit Ponderosa Apartments at 2224 Live Oak St. inCommerce. The 60%-leased asset went to Fontaine Management Inc. ofGretna, LA, which two more properties in nearby Greenville andscores of others between Texas and its home base. The seller,banking $1.6 million from the sale, is a private investor from ElPaso.

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"He did a quick 10-day inspection and went hard with asix-figure earnest money," Pettigrew says. The deal included anadjacent 16,902-sf tract of raw land.

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The complex, developed from 1965-76, has a 17-unit density onthe 7.5-acre tract. The one-, two- and three-bedroom apartments,ranging from 450 sf to 1,050 sf, are bringing in $460 to $750 permonth.

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Pettigrew says the buyer, though, is facing deferred maintenanceunlike Oak Cliff's buyer. In addition, Ponderosa's new owner isplanning a full overhaul, inside and out, according to thebroker.

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