The 216-unit Gage Place Apartments at 9874 Dale Crest Dr. and 10 townhouses across the street in the Bachman Lake area of Dallas are now fully occupied and have a waiting list, Tim Gillean of Gillean Properties in Plano tells GlobeSt.com about the made-over asset bought with an 87% occupancy and need of repair. Gillean bought the complex, with below-market rents, in February 2003 for $4.3 million from ARCap REIT Inc., a New York City-headquartered servicer, and sunk $2.2 million or nearly $10,000 per unit into renovating the 10.7-acre property. "This property has surpassed our expectations," he says.
Nomura Credit Capital in New York City provided the loan with a 30-year amortization in a package arranged by its senior vice president, Michael Pryluck. Gillean retired a $5.6-million vehicle placed for acquisition and construction with Colonial Bank in Dallas.
Last year, Gillean wasn't sure if he was going to hold onto the townhouses, with 1,884 sf apiece, or sell them piecemeal. The decision's been made to hold, with the units bringing in $899 per month, excluding electricity. The apartments, which average 1,154 sf, go for 65 cents per sf on an all-bills paid basis.
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