A pair of investors from Cayucos, CA made the inroad with the acquisition of Prairie Crossing at 700 W. Avenue G in Garland from Mordecai Properties Inc. of Irving. Scott Lamontagne with Marcus & Millichap in Dallas says "they're going to give it a shot and see how it plays out" before deciding to invest in additional Texas properties.
The 41-year-old complex, positioned on three-quarters of an acre, was 90% leased at sale time to tenants who've been in place for a long time, Lamontagne tells GlobeSt.com. "It's a nice clean deal for a first-time investor in Texas," he says.
Mordecai bought Prairie Crossing in 2000 and completed a renovation on its only multifamily holding in Dallas/Fort Worth. Now, the seller is eyeing value-add properties in Florida, according to Roger Hendricks, Marcus & Millichap broker who represented Mordecai Properties.
Prairie Crossing, built in 1963, was on the market 60 days for $600,000 before going under contract to investors who sold a small office building sale in their homeport. Five offers rolled in on the day they placed their offer, according to the brokers. "It went to the one with the tightest terms," Hendricks explains.
The complex consists of one 400-sf efficiency, 17 one-bedroom apartments 550 sf and a 700-sf two-bedroom unit. The monthly rents are $350, $485 and $585.
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