$38M All-Cash Offer Locks Up 804 Units in North Dallas

The ability to close more so than the price on the table put the class B deeds into the hands of CNC Investments, Paul Harris, managing partner for the Southwest region for Chicago-based Moran & Co., tells GlobeSt.com. "That purchaser has a history of closing what they put under contract," he says of an offer that was up against more than 20 others, a couple of which were slightly higher.

The portfolio consists of the 388-unit Versailles at 4900 Pear Ridge Dr.; 264-unit Dana Point at 1880 Lina St.; and 152-unit Heatherstone at 2960 Marsh Lane. The complexes were developed in 1986 by Fairfield, which took the trio to market in April in its usual turnover strategy for older product. The Grand Prairie-based Fairfield does not have any more complexes on the Dallas-Fort Worth market at this time, Harris says.

The portfolio, with 622,336 sf of rental space, was more than 90% occupied at sale time. Units average 800 per sf and rent is in the low 90 cents per sf range. For its cash, CNC is getting 30 acres near the intersection of the Dallas North and President George Bush tollways in North Dallas, where class B product brings in 85 cents per sf to 95 cents per sf. The new owner intends to do some moderate renovations and then raise the rent, Harris says, noting there was no deferred maintenance on the properties.

The deal marks the first closing since Moran & Co. opened doors in Dallas. It was in progress as the office ramped up, Harris says. Thomas Moran, the firm's senior partner, represented Fairfield Residential while buyer, CNC Investments, used an in-house broker to negotiate the acquisition.