Two Multifamily Investors Shop Fort Worth for Next Buys

The 177-unit Second Dimension Apartments at 5901 Sam Calloway Rd. in the city's western sector is scheduled to close May 31, Thomas Emerson Burns for Phoenix-based Hendricks & Partners' Dallas office, tells GlobeSt.com. The buyer of the 288-unit Bellaire at 5513 Cross Creek Lane in the Benbrook section is looking at a June 1 closing, he says. The older products are hot items in Dallas-Fort Worth, just like every place else, as investors look for safe havens for their capital and value-add properties for sure returns.

Second Dimension, a class C complex, consists of 23 buildings on nearly eight acres. Seller Calloway Ownership Co. Ltd.'s offer brought out eight bidders for the 1974 product due to its positioning to the Lockheed Martin plant and Carswell Air Force Base. The seller is part of Woodland Hills, CA-based Preferred Properties Financial Corp. It has owned the 94%-occupied complex for more than 20 years.

Second Dimension, on the market since October 2001, carried a $3.4-million asking price. Negotiations got "pretty close," Burns confided. The holding has good upside for the Irving, TX investor. It is selling at an 11.7% cap rate, he points out. The average rent for the typical 500 sf unit is $520 per month.

The Bellaire, built in 1981, is being sold by an Orange, CA "mom and pop" investor to a larger investor based in San Francisco. The buyer, whose identity is hushed for now, owns a significant number of units in Dallas-Fort Worth, according to Burns.

On the market for five months, the class B holding is 93% occupied and brings an average rent of $570 monthly for an 833-sf unit. The seller, says Burns, is looking to retire from the real estate business and is selling after 10 years of ownership. The Bellaire is fetching in the low $30,000 per unit range.