"The significant upside was part of the appeal of the deal," George Deuillet III of Hendricks & Partners' Dallas office tells GlobeSt.com. The Governor's Palace, Ridgmar American and Ridgmar West Apartments were sold as a package. Developed separately in the mid-1960s, the assets have been under single ownership for several years.
The buyer of record is 2000 Ridgmar Apartments LP, a Calabasas, CA-headquartered multifamily owner. The seller of record was Ridgmar Partners LP of Dallas, which parted with the complex after four years of ownership. The asking price was $4.6 million. And the property, totaling 6.7 acres, was on the market just 60 days, attracting high interest from the turn-around crowd that's been buying up available product, more so in Fort Worth than Dallas. "We got what I think was a fair price for the buyer and the seller," says Deuillet. He and J. Michael Lewis, also with Hendricks & Partners, negotiated the sale.
The rehab plan will take a year to 18 months to execute. "It will be a nice before and after," Deuillet says. The new owner, well versed in repositioning, is bringing in a new team to manage the complex and oversee the renovations. The need to repair was the reason occupancy was 80% at sale time in comparison to its 90%-leased neighbors, he says.
Units average 956 sf, renting for an average of $555 per month. In comparison, the DFW's across-the-board average is $720 per month, according to the latest figures from Marcus & Millichap.
The property's strong potential also lies in its positioning near Ridgmar Mall, a nice single-family residential area and Interstate 30. The gated complex is situated in a wooded area with reserved covered parking, definite pluses for Texas real estate.
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