Frank Patafio, Praedium principal, emphasized to GlobeSt.com that the Glen Oaks sale along with three other multifamily complexes now on the market does not mean that Praedium is packing its bags and leaving Texas. While it's looking for other properties to acquire, Praedium is looking to sell a Glen Oaks' neighbor, the 120-unit Willow Park Apartments at 6109 Skillman; Chimney Ridge Apartments at 11363 Amanda Lane in Dallas; and Sharon Park Apartments at 5600 Chimney Rock in Houston. Brian O'Boyle of Dallas' O'Boyle Properties holds the listings. The "to go" list totals about 1,200 units.
Praedium acquired Glen Oaks at 8300 Skillman Ave. in 1998 from AIMCO. Patafio says the 100%-occupied complex, built about 15 years ago, drove four serious offers. The selling price breaks down to about $54,000 per unit for the class B property. The leading selling point was its positioning in a strong middle-income neighborhood where people like to live, says Patafio.
Patafio says Praedium "spent a nice sum" to renovate Glen Oaks before it set out on a repositioning that boosted occupancy and brought a profit at the closing table. He confides that the NOI was $600,000 in 1998 and it's now $750,000. "This deal is representative of Praedium's investment strategy and the firm's ability to maximize an asset's performance," he said in his prepared statement. The Praedium negotiating team consisted of Patafio, Jeff Sirkin, vice president, and Amachie Ackah, associate, along with O'Boyle.
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