304 Units Fetch $45,000 Per Door

Larkspur, CA-based Fowler Flanagan's $13.6 million or $45,000 per door took a class B-plus asset in a market where product is getting harder to find, Mike Burch with Phoenix-based Hendricks & Partners' Dallas office tells GlobeSt.com. Jefferson Oaks at 18788 Marsh Lane was the last asset in Dallas/Fort Worth for the Chicago-headquartered ChrisKen Group, which held the reins for six years.

"It's probably the best class B-plus in that submarket," Burch says of the 90%-leased Jefferson Oaks. "It's good real estate and it's a good long-term hold."

Twenty offers were placed in a 120-day marketing period for an 18-year-old asset with a Dallas County assessment pushing $16 million. Burch says Fowler Flanagan, one of the top bidders, won the chase for its track record and ability for a quick close. "This was a pretty easy deal that's kind of rare to find because the previous owner was willing to pay off an existing note to allow the buyer to bring in new debt," Burch says.

Positioned on 10.9 acres near the George Bush Tollroad, the complex's one- and two-bedroom units average 848 sf and rent, 86 cents per sf. The asset traded at close to a 7% cap rate, says Burch, who single-handedly brokered the transaction. And concessions, Burch says, are minimal--15 to 30 days and only at certain times of the year--due to high demand for units with a full-size washer and dryer and individual water meters. The new owner, like the seller, has an in-house management team.

Fowler Flanagan is shopping hard all over Texas to replenish its stock. "They think it's a good time to buy in Dallas right now, but it's hard to find good class B property," Burch says.