GRAND PRAIRIE, TX-In early 2011, Dawn Properties Inc., a commercial real estate investor operating under the name Lexington Apartments LLC, bought the 164-unit Lexington Apartments out of foreclosure. After investing approximately $1.3 million in the 1980s complex, the Hattiesburg, MS-based investor disposed of the multifamily property, selling it to Dallas investor Lexington Prairie LP in an off-market transaction.

“I’d known the seller for a long time and knew what they were doing with the complex,” comments Sam Pettigrew, partner with Dallas-based Cantrell Co. & Partners, who negotiated the transaction between buyer and seller. “I asked if I could show it to the specific buyer, they said sure, the buyer made an offer, and that was that.”

Pettigrew tells GlobeSt.com that the inspection took 10 days, and that the deal was completed using a bridge loan. The multifamily property at 201 W. Tarrant Rd. wasn’t completely stabilized before negotiations began – it was still in lease-up. However, Pettigrew notes, the buyer understood the advantage of claiming the asset before the asset hit the general market. Furthermore, though Lexington was 73% occupied when it went under contract, by closing, occupancy was at 90%.

“This was a good deal for the buyer, as he saw the value of the pricing,” Pettigrew adds. “And the seller was satisfied.” The sales price was undisclosed, though the Dallas Central Appraisal District assessed it at $4.3 million.