1,447-unitportfolio

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Just sold were the 228-unit Windsor Place Apartments at 3501Curry Lane, 200-unit Hunter's Ridge Apartments at 5450 Texas Ave.and 124-unit Cedar Creek Apartments at 1948 Denton St. The WalnutCreek, CA-based seller pulled a fourth property, the 256-unitIndian Run Apartments at 3500 Cedar Run Rd., also in Abilene, fromthe sales block.

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Jordan Cortez, director of secondary markets for ApartmentRealty Advisors in Dallas, says the Abilene assets had been undercontract, but fell out of escrow shortly before two complexes with639 units inLubbock, TX were sold from the portfolio to HaleyAssociates LP of Omaha. "Once we closed on the two Lubbock deals,we brought back the Abilene properties to a handful of buyers,"Cortez says. "Bostonian stepped to the table with their reputationto close, which helped them secure the deal. We've sold 14 or 15deals to these guys and I know them personally."

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[IMGCAP(2)]The complexes are close to 30 years old, with one-,two- and three bedroom units from 609 sf to 923 sf. Rents rangefrom $370 to $720 per month.

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Cortez says the new owners will perform minor upgrades althoughupside isn't reliant on the improvements. "Given the strength ofthis market, there is a significant upside either way," heexplains. "An owner could go in and take the interiors to the nextlevel and raise rents or someone could manage the deals as they areand still get good returns." He teamed with ARA Dallas' managingpartner Brian O'Boyle and colleague Michael Girard to sell thepackage. Jason Rice with Quantum First Capital in Dallas, arrangedfor the seven-year, interest-only Fannie Mae loan from Green ParkFinancial in Bethesda, MD.

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Bostonian Investment already owns the 225-unit Tiffany SquareApartments at 6209 W. Interstate 40 in Amarillo, TX, butCortez says it wants to increase its holdings in West Texas andstatewide. In 30 days, the buyer is slated to close on a complex inEast Texas.

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In early 2007, Bostonian Investment, formerly the Lindahl Group,began buying class B and class C apartments in Texas, looking toamass 6,000 units in the state. Its holdings include Houston andDallas/Fort Worth.

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"In the past, they've looked at both value-add opportunities anddeals with strong in-place cash flow," Cortez explains. "The goodthing about the three Abilene deals is that there is a good cashflow because of the good economic fundamentals in place. Theapproximate occupancy is 96%."

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