Investors Fancying Fort Worth Multifamily Complexes

Class B and C product is popular among investors these days, with multifamily leading the pack as a safe harbor and practically guaranteed returns. The Atlantic Housing Foundation has paid nearly $6.3 million for the 24-year-old Quail Ridge, a 27-building development on about 12 acres at 4500 Brentwood Stair Rd.

Quail Ridge's acquisition and up-and-coming renovation are being funded through a $7.3-million bond issue, Scott Henderson, chairman of the national multifamily group for Coldwell Banker Commercial, tells GlobeSt.com. He and Denis Heeter, associate broker with Coldwell Banker Commercial DFW, brokered the sale on behalf of buyer and seller, D. Star Quail Ridge Partners, a Canadian investment group. The seller acquired the holding, fronting Interstate 30, in 1997.

The Quail Ridge buy marks the second in four months for the nonprofit. Henderson says the three-to-five-year goal is to acquire 10,000 units. That kind of aggressive intent has the buyer's team in "direct dialogue" with owners who are open to selling, but have not necessarily put their properties on the market.

The 90%-occupied Quail Ridge fetches 65 cents per sf in rent. Its average unit size is 758 sf.

The Commons at Ridglea, a 21-building complex positioned at 6109 W. Ridge Lane, is now under the ownership of Tollgate Ltd., a Texas partnership with principals from Colorado. The investors acquired the holding via a $2.9-million first mortgage loan arranged by Birmingham, AL-based Collateral Mortgage Capital LLC. The loan represents slightly less than 75% of the purchase price, Todd Elkins, the loan originator, tells GlobeSt.com.

Elkins says the deal sets aside $250,000 for renovation of the 73%-occupied complex on about 6.6 acres in the city's western tier. The three-year loan will be converted to a long-term facility once renovations are done and occupancy is boosted, he confides. New South Federal Savings Bank provided the financing.