Howard Cho of Ventura got an 85%-occupied complex at 505 E. Alexander Lane in Euless for a turnaround plan that required a Gemsa loan assumption at an 8% fixed-rate interest, John Barker with Marcus & Millichap's Dallas office tells GlobeSt.com. The one-acre property, developed in the 1960s, sold at a 7.3% cap rate.
The seller, a father-son investment team from Denton, acquired the holding, assessed at $679,000, in May 2001. "Basically," Barker says, "the sellers are just getting out of the game altogether." Four more Dallas-area properties, representing the balance of the portfolio, are under contract, he says.
Cho's plan includes finishing an extensive rehab started by the seller at the two-story townhouses. The six-building development is positioned near new single-family housing and class B and C multifamily properties, just off Texas 183 near junctions with three other major arteries. Renting on an all-bills paid basis, the 650-sf one-bedroom units and 950-sf two-bedroom townhouses go for $550 and $650 per month, with one two-bedroom, one bath floor plan bringing in $675.
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