Sam Lewis of Phoenix-based Hendricks & Partners' Dallas office, tells GlobeSt.com that the Casa Verde Apartments at 5880 Peavy Rd. will now undergo "a $1-million-plus rehab." The complex, part of a portfolio of four offered by W&O Cos. of New York City, went "at a substantial discount off the list price" of slightly more than $4 million, he says.
The portfolio, in an all or one offering, was brought to market several months ago. Lewis says there were lookers, but no serious offers until the owner dropped the price a bit. The homebuilder, whose identity Lewis is guarding, came up with Casa Verde's winning proposal: cash on the line and a bank loan assumption.
The new owner won't be concentrating just on restoring the down units to the rent market, but rather undertaking a top-to-bottom renovation for an updated look to a 1973 product. Mechanicals, fenced patios and canopies are part of the plan as are kitchens, baths and roofs on the 25 two-story buildings situated on eight acres near Loop 12 and Interstate 30.
The Casa Verde, sold at about a 13% cap rate, has units that average 806 sf in a mix of efficiencies of 411 sf to four-bedroom apartments of 1,109 sf. Rents average 65 cents per sf or $521 per month for the sub-metered, all bills-paid property.
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