The vintage nine-building complex was just 61% occupied at sale time, delivering a built-in upside with a re-tenanting and makeover, Pete Hartnett of Phoenix-based Hendricks & Partners' Dallas office tells GlobeSt.com. Miller/Garland Property Investments LP, led by a Dallas doctor, acquired 1214 W. Miller Rd. from a private investor, MV Ventures I Ltd. of Coppell, who released its lone asset for slightly more than $1 million, Hartnett says.
The new owner has hired a fee management company to whip the development into shape after six years of being privately managed. The asset, sitting on about 1.9 acres, was sold with deferred maintenance due in part to the private management, according to Hartnett."It has real good potential," Hartnett says, adding that "it's built like a tank." Post-renovation will bring a slight rent hike, but the real gain comes from the re-tenanting, he emphasizes. The new owner intends to spend at least $5,000 per unit for the repositioning play, according to Hartnett.
The class C complex is a mix of mostly one- and two-bedroom units that range from 510 sf to 717 sf. The lone three-bedroom apartment is 785 sf. The monthly rent is 92 cents per sf or a range of $505 to $605 for the majority of the mix while the largest apartment reels in $685.
The listing baited eight offers from private investors in three weeks of being on the market. "There are a lot of guys who have $200,000 to $300,000 to put down on a $1-million deal," says Hartnett, who most often wheels and deals in the $3.5-million range.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.