CWS Wins Hot Bidding for 332 Class A Units

As soon as CWS closed the deal for 3702 Frankford Rd., a new sign went up on the gate: Marquis at Frankford. The 90%-leased complex, formerly Gates of Frankford Springs, is the second sale in a three-property liquidation by M&M Properties of Fort Worth, which used separate equity partners to amass a portfolio built by Dallas-based Windsor Residential Inc. The co-general partner for the Frankford holding is Parsippany, NJ-based Prudential Real Estate Investors.

Chris Paul, president of LaPaul Partners in Dallas, says no one in the best and final had a full-price offer on the table although the North Dallas asset sparked a highly competitive bidding scenario. "But," he tells GlobeSt.com, "they were close." CWS' previous business dealings with Prudential helped to sway the decision its way, he says.

The JV sellers took over the asset in 2000 shortly after its completion. The 17.7-acre development, one mile west of the Dallas North Tollway and blocks from Texas 190, contains 18 two- and three-story buildings with one-, two- and three-bedroom units. Apartments average 1,024 sf, with monthly rents of $1.07 per sf. A CWS team has replaced Greystar Management Services LP of Houston as property overseer.

M&M last year sold the neighboring 296-unit Andalusian Gates to a Southern California buyer as part of the class A portfolio disposition. The third property, the Gates of Normandy, was on the market and then pulled to gain some occupancy points. Paul says it should be returning to the market soon. "They are taking advantage of the strong sellers' market for real estate acquired a few years ago," he says, adding the going-in plan was a three- or four-year hold.

CWS Apartment Homes, with its acquisition team in Austin, picked up equity from GE Commercial Finance Real Estate for the takedown. The GE Commercial Finance team, led by Chris Overberg, got the transaction approved within 30 days. Tracy Kennedy, a director in Austin for Houston-based LJ Melody & Co., arranged Fannie Mae financing through Prudential's DUS unit.