The Southwinds Apartments at 1301 W. Wheatland Rd. in Dallas was sold at "a significant discount" from the $2.7-million asking price, Jay Gunn with Phoenix-based Hendricks & Partners' Dallas office tells GlobeSt.com. The 10-year owner, Southwinds Associates, an affiliate of Southwinds Enterprises of Maryland, had just gotten a contract after a 30-day marketing when fire damaged two buildings in the 8.2-acre, class C complex in Oak Cliff. Gunn says the rebuilding was completed by sale time, but occupancy had dipped to 70%.
The new owner, planning additional upgrades, assumed a loan of nearly $2.1 million with three years left on the term, according to Gunn. Prudential Financial Inc. of Newark is the lender.
"I think it will reposition well," Gunn says. "He will focus on the occupancy and maybe start to bump rents in nine months." He estimates the new owner has a 10% to 15% spread before reaching market rate. Right now, they range from $399 to $599 per month or 54 cents per sf. The complex consists of 24 one-bedroom units with 650 sf; 100 two-bedroom apartments with 850 sf and 43 three-bedroom designs of 1,050 sf.
The local buyer owns four other class C properties, totaling 500 units, in the metroplex. And like the others, the plan is to self-manage the 22-year-old asset.
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