Portfolio Sells 10 Days After Largest Dow Point Drop
At closing, agencies were changing terms with borrowers, incorporating 12 months reserves for debt service, taxes and insurance but Greysteel was able to close before those restrictions were placed on the transaction.
EL PASO, TX—A two property multifamily portfolio, 525/670 N. Carolina Dr., sold 10 days after the largest point drop in Dow Jones history. Both built in 1981, the 129-unit property consists of two-bedroom one-bath units with an average square footage of 600.
Greysteel’s Jack Stone, Doug Banerjee and Andrew Hanson from the firm’s Dallas offices sold the property on behalf of the seller and solely procured the buyer. Greysteel’s Fisher Wells and Daniel Harnett arranged the financing on behalf of the buyer. The purchase price was undisclosed.
“Our team worked diligently to execute this transaction, coming to creative solutions and funding with one of the last agency loans to have pre-COVID-19 leverage and terms,” Stone said. “I’m very proud of what we were able to accomplish under extremely volatile conditions.”
The properties are near parks and Interstate 10, which is desirable for daily commutes and traveling to other El Paso neighborhoods.
“As we were closing, the agencies were changing terms up to the last minute with borrowers, lowering their leverage and incorporating 12 months reserves for debt service, taxes and insurance,” Stone tells GlobeSt.com. “We were able to close just before any of these restrictions were placed on the transaction. The buyers are looking forward to owning in a well-diversified market with solid fundamentals like El Paso.”
El Paso is recognized as one of the largest international trade hubs in the Western Hemisphere. It has one of the largest US Army bases and is home to a number of government agencies. Additionally, El Paso is ranked one of the safest US cities and one of the best for raising a family.
The average size for an El Paso, TX apartment is 812 square feet, but this number varies greatly depending on unit type, according to research from Yardi Matrix.