Fair Park Complex Brings $25,000 Per Door

The private investor from Pleasant Hill, CA paid $840,000 for the Delta Plaza Apartments at 2310 Robert B. Cullum Blvd. to a private investor from Denton, TX who closed out a three-year hold and repositioning. "The property is full. The numbers backed it up and we sold it on the numbers," John Barker of Marcus & Millichap in Dallas tells GlobeSt.com of a trade with a 10.8% cap rate.

Barker, the lone broker on the transaction, says the California investor used 1031 Exchange proceeds and a loan from Liberty Lending in Southlake, TX to take the deed and ready for additional renovations. Before the property changed hands, a new roof went on the building, which sits two blocks from the Cotton Bowl, one mile from Interstates 30, 45 and 75 and less than two miles from downtown Dallas. The prospect of $40 million in city improvements to the immediate area also weighed heavily on the decision to make an offer at just $10,000 below the asking price. "He sees where Fair Park's going," Barker says of the buyer's willingness to pay one of the highest prices per door for a property in a neighborhood with a long wish list. Fair Park's per unit prices most often range from $12,000 to $15,000.

The 42-year-old complex has seven one-bedroom units of 437 sf; 23 two-bedroom apartments, 632 sf; and four three-bedroom designs, 823 sf. One-and two-bedroom units bring in $450 per month and the largest apartment gets $650 monthly.