The JV's purchase of the 34-building complex at 3950 N. StoryRd. is being packaged as a three- to five-year hold, according toKristin Panehal, senior vice president of Newport Beach, CA-basedBuchanan Street. She tells GlobeSt.com that the JV secured afive-year loan from Freddie Mac through Deutsche Bank to take thedeed from an affiliate of Fairfield Residential LLC in SanDiego.

|

Panehal says she'd been evaluating deals in the Charleston,SC-based Greystar's pipeline since January. "This was the first onethat had enough value-add component," she explains. "It was thefirst deal that really fit what we were looking for." With the dealdone, the JV is sizing up a property in Colorado.

|

Panehal says Greystar has bids in hand to select contracts forthe exterior upgrades, which are projected to take six to ninemonths to complete. Interiors will be retooled as units turn. Thethree-story buildings, developed in 1983 on a 10.6-acre tract, hasone-, two- and three-bedroom units averaging 845 sf. In-place rentsaverage $720 per month, with concession burn-off adding promise ofadditional upside after the extensive renovation is done.

|

"Anytime you put that significant amount of capital into aproperty, you expect to get a return on the capital," Panehal says.How much or when rents will start to climb are being assessed. But,she readily points out that "the market is improving and theexpectation is concessions will get removed in themarketplace."

|

The plan is to bump the Shadows of Cottonwood to class A statusfrom class B. Greystar's new property to manage and lease issituated in the Las Colinas submarket. "The fundamentals ofmultifamily are still strong in Dallas, particularly in LasColinas," Kevin Kaberna, Greystar's investment principal, says in apress release. "We were excited to find such a well-located assetat a deep discount to replacement costs."

|

Paul Harris, partner in Dallas for Chicago-based Moran &Co., and Thad Wetterau, director, brokered the sale. Panehal saysthe deal took about 90 days to cycle through all channels.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.