Tim Gillean of Gillean Properties got the note for the 3025 E. Park Row property from special servicer, Midland Loan Services Inc. of Overland Park, KS. According to the Tarrant Appraisal District, Southwest Winding Oaks Partners of Huntington Beach, CA bought the 9.3-acre asset in October 1999.
Gillean tells GlobeSt.com that he bested several others chasing the deal because "Midland wanted a quick close. I closed it in four days time, cash to the note." Most of his competition wanted a 30-day look and 30-day close, he says.
For Gillean, the speed to purchase the 39-year-old complex was the price, far below the latest assessment of $3.4 million. Winding Oaks was a tax-credit property, but the restriction was "wiped clean at the foreclosure," Gillean confides.
Aside from filling the empty units, the upside will come from a rent hike once construction's completed. Gillean expects to spend nine months to a year completing the makeover on 100 one-bedroom and 100 two-bedroom units and exterior changes, including roof lines. The all bills-paid apartments average 800 sf and rent for 70 cents per sf. The complex will stay all bills paid, but rents will bump five cents per sf to 10 cents per sf post-renovation, Gillean says.
In keeping with his MO, Gillean will change the complex's name. If it's available for use, Spanish Oaks signs will rise, taking a cue from Gillean's niche arena of repositioning multifamily properties in Hispanic neighborhoods.
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