A Kent, WA investor, using a limited liability company structuring, bought the 154-unit Surrey Oaks at 525 King George Dr., marking his first solo acquisition in Dallas/Fort Worth. In January, the investor teamed on the purchase of Newport Landing in Dallas.
Thomas Burns with Phoenix-based Hendricks & Partners' Dallas office tells GlobeSt.com that the new owner was the high bidder from a field of would-be buyers chasing upside from a rehab and 12% vacancy. He says the buyer opted for a new loan rather than assume the existing debt.
Seller Dstar Surrey Oaks Partners LP of Toronto, Ontario bought the holding seven years ago. Burns says the seller intends to do a 1031 Exchange with the proceeds, but where the gain will land, Texas or elsewhere, has yet to be determined.
The 20-year-old Surrey Oaks, bearing a $3.3-million assessment from Tarrant County, was on the market for $3.6 million. The six-acre complex has 84 one-bedroom units and the balance are two-bedrooms, with the average being 813 sf. The monthly rents average $545. The location makes it a class C more than the quality of the buildings, according to Burns. He and George Deuillet III, also with Hendricks & Partners in Dallas, brokered the transaction.
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