The 12-unit building at 5330 Junius St., between Munger and Swiss avenues, was on the market for $58,000 per door. "It took us a long time to weed through all the tire kickers," Brent Boone with the Dallas office for Phoenix-based Hendricks & Partners tells GlobeSt.com about the five-month start-to-finish for the transaction.
Eric S. Stacy of Seligman, MO, who previously lived in Dallas, took the top offer on the table for the fully leased property with market-rate rents. "It's a coupon deal, there's no question," Boone says, adding "the cash flow absolutely supports the price. It was high-priced, but not over-priced."
Buyer Landis Family Trust of Danville sold a multifamily property in Santa Cruz and teamed part of the 1031 Exchange proceeds with a loan from Matrix Capital Bank in Denver to acquire its first Texas asset, according to Boone. Jim Osgood with BMC Mortgage Inc. in Dallas arranged the financing.
The 9,360-sf building contains eight one-bedroom units of 703 sf and four two-bedroom-two bath designs of 1,000 sf. The monthly rents are $695 and $895, respectively. The upside, Boone says, clearly rests with a long-term hold. "The rents are as high as they're going to be for the next two or three years," he explains, adding that the property's impeccable condition and NOI justify the price tag. "You have to see the property on the inside." Phillips Commercial in Dallas has been hired to manage the apartment building, replacing a on-site private manager.
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