Vowing "to get it all fixed," Tim Gillean of Gillean Properties Ltd. jumped into the rehab the same day that the deal closed for Nottingham Apartments at 3232 Chapel Creek Rd. in the northwest sector. Gillean got the deed at discount from Miami-based Lennar Partners, which foreclosed in June 2003 on a Dallas/Fort Worth borrower.
Gillean tells GlobeSt.com that he paid close to $1.4 million for a 40%-occupied complex, now getting a full makeover, inside and out. The code violations, he says, "were all part of the rehab anyway so I didn't mind taking them over." New roofs and new HVAC as well as significant interior upgrades are part of the plan for the gated community, now being called Courtney Place Apartments. Gillean says he expects to spend $800,000 to $1 million for code repairs and upgrades to bring the complex in line with his other Bachman Lake-area holdings. The 5.6-acre Courtney Place is a mix of one-, two- and three-bedroom apartments, with an 850-sf average, renting for 75 cents per sf.
Gillean secured a three-year construction and acquisition loan, with an 18-month interest only component with a 4.25% fixed interest rate with a three-year call. Denise Cansler of Colonial Bank arranged the financing for an acquisition brokered by Larry Gorzyski of James M. Brown Partners in Dallas.
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