Positioned at 6889 Hightower Dr., the class A Haverhill had several points going in its favor to warrant Merit's attention. Foremost is that it was developed by California-based Fairfield Residential LLC. "It was the location and quality of construction," Mark Krugman, Merit principal, tells GlobeSt.com. A high barrier to entry in the North Richland Hills market brought out a large number of bidders jockeying for the deed.
Krugman confides that he, principal David Shweky and Merit's investors are 90 days out from closing on the balance of its current options: two Dallas-Fort Worth multifamily properties, totaling 422 units, and two in Houston for another 414 units. The first of those four deals closes in April.
Haverhill opened in 2000 on a 19.3-acre tract in what has become a popular address due to its midway positioning between the sister metropolises. At sale time, the 21-building complex was 93% occupied. Its average unit size is 881 sf and rent is bringing in about 97 cents per sf.
Thomas Mitchell, principal and founder of Coldwell Banker Commercial DFW, represented buyer and seller in the Haverhill transaction. Brad Hatcher of Houston-based L.J. Melody Co.'s Dallas office structured a fixed rate loan with Deutsche Bank for the acquisition, the same financing team for Merit's February acquisition of Brazos Park in Arlington.
Merit's Sun Belt interest validates what industry researchers have been saying for some time. Krugman views "the economically vibrant and rebounding markets of the Sun Belt" as "exceptional opportunities for investments." He's not ignoring the rest of the US, but for now Texas has all the attention.
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