Seller representative Tom Burns, associate partner withHendricks & Partners' Dallas office says MC Cos.' plan is toupgrade the units and take them to market rents. Upon renovation,rent on the apartments 5401 Independence Pkwy. could increaseanywhere from $.10 to $12 per square foot, Burns says.

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"Hall had gone in and renovated a handful of units, and was ableto get $135 to $150 over the market," Burns tells GlobeSt.com. "Asfor the property itself, the units themselves aren't in seriousneed of renovation. They just need a little updating."

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Hendricks & Partners partner Tom Warren worked with Burnsand senior investment advisor Jay Gunn on the transaction. Warrensays the Frisco, TX-based Hall Financial Group received 17 offersfor the 1980s complex, primarily from value-add, private capitalplayers. "The buyer brought the most enthusiasm and interest andwere the most aggressive when it came to getting their name in thehat," Warren says. Furthermore, he continues, MC Cos. made one ofthe most aggressive offers.

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"As it turned out, with the market deteriorating the way it has,we picked the right horse," Warren adds. "This buyer was able tojump over significant hurdles in the capital markets to get thedeals done."

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The 97%-occupied Harvestree Apartments is on 11.3 acres andconsists of two-bedroom apartments, ranging from 873 square feet to1,189 square feet. Market rents are between $725 and $860 amonth.

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MC Cos. bought the 308-unit Bay Harbour Apartments at 2500 E.James St. in Baytown TX and the 255-unit Cooper's Hill Apartmentsat 739 W William Cannon Dr. in Austin, TX last summer. The companyhas extensive holdings throughout Arizona as well.

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