Seller Jumps at $20M Plus for 322 Suburban Units

"We knew the seller was going to put it on the market and we stepped in right before they were going to pick a broker and they accepted our offer," Mark Alfieri, AMLI's senior vice president, tells GlobeSt.com about 770 and 777 Fairway Drive in Coppell. "It was a well located, class A suburban asset in a stable submarket at an attractive price per pound." Renamed to AMLI on the Fairways, the deal closed in a 45-day start to finish.

The 16.4-acre development was 92% leased at sale time. The 26 two-story buildings are divvied into 182 one-bedroom designs, 116 two-bedroom units and 24 three-bedroom apartments. The rental rates, which will hold firm for awhile, range from $725 to $1,510 per month, according to Alfieri. Units average 900 sf.

AMLI on the Fairways neighbors the Riverchase Golf Course and positioned a mile from AMLI's Valley Ranch property. The development, bisected by Fairway Drive, is assessed at $22.6 million by the Dallas Central Appraisal District. Given the occupancy, location and caliber, it's a safe bet that the closing price brought $70,000 per door or slightly more for seller and developer, Republic Property Group of Dallas.

"This acquisition represents the opportunity to add newer communities to our portfolio as we continue to sell older ones," AMLI president Allan J. Sweet said in a press release about the rash of acquisitions and dispositions that began in the first quarter. AMLI projects it will spend another $165 million on the portfolio churning as the year plays out. According to its SEC filing, it earmarked $25 million for the second quarter closing and allocated $60 million in the third quarter and another $80 million for fourth quarter buys.