Pheng Investments, led by Sephal Pheng of Flower Mound, obtained a $2.2-million loan through Atlanta-based Column Financial Inc. to acquire the Catalina Court Apartments at 3425-3435 S. Polk St. The five-year loan, representing an 80% loan-to-value ratio, has a 25-year amortization and 1.47x debt coverage. Steve Sieling of BMC Mortgage arranged the financing.
Eighteen months ago, the Dallas-based seller, Greentree Apartments LLC, bought the neighboring Greentree Apartments and Queens Court as a package. The seller pumped $600,000 into the consolidated properties and now has collected about $22,000 per door, Peter J. Harnett of the Dallas office for Phoenix-based Hendricks & Partners tells GlobeSt.com.
The class C property attracted five offers in the 60 days it was on the market. Pheng, who owns other multifamily assets in the immediate area, sat down at the closing table as the highest bidder. His plan includes in-house management for a long-term hold, Hartnett says.
The 92%-leased holding has units that average 576 sf, with rent coming in at 88 cents per sf. The 12 buildings sit on 4.3 acres.
The class C apartment market is showing renewed vitality after surging late last year and then going quiet for a few months. "The product that is deliverable will sell," Hartnett says. Right now, he has three complexes in escrow that should close in 60 days. The Catalina Apartment complex is one of three to trade in the last week just in Oak Cliff.
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