DENTON, TX-Following its success with the 240-unit Bridgemoor at Denton, Interwest Capital Corp. came back for more, acquiring the 300-unit Camino Del Sol for $17.2 million.  The San Diego investor will renovate the 100% occupied multifamily property, situated on 11 acres, in hopes of boosting rent growth.

“The interesting component we found in this property was that there had been fire damage in the units, about a dozen or so, and they were renovated awhile back,” says Karl Coleman, president of Interwest. “When that happened, the owners were able to get significantly higher rents in those renovated units.” According to the Denton Central Appraisal District, the seller of the 1980s-built multifamily complex at 1030 Dallas Dr. was SDS Apartments NF LP, a subsidiary of Sterling American Property in Great Neck, NY.

Coleman tells GlobeSt.com that the Camino Del Sol buy was different from Interwest’s typical M.O. in that it was a direct acquisition. Interwest’s purchase of Bridgemoor at Denton, a senior citizen complex at 2801 Spencer Rd., involved acquiring the non-performing loan, taking over the complex, then foreclosing on it. In January, 2011, Bridgemoor at Denton was 35% occupied; these days, Coleman says occupancy was well north of 90%.  

“Given the success we had at Bridgemoor, and in Texas, we were intrigued when we learned about Camino Del Sol,” Coleman says. “It wasn’t on the market yet. Through our relationship with Pinnacle, we learned that the owners were interested in selling.” The Pinnacle Family of Cos., which operates many of Interwest’s nationwide holdings, will manage Camino Del Sol.

Coleman acknowledges a 180-degree shift when it comes to commercial real estate investments in Texas. At one point, he says, he steered away from the Lone Star State because of its low barriers to entry when it came to development.

But now, “Texas has one of the better, if not the best, economies in the country right now,” he continues. “It has a good employment base, with the energy industry driving a lot of that.” Given that Interwest likes to hold onto commercial real estate assets for a five-year time frame, “we’re hopefully hitting the Texas market at the right time,” Coleman comments.