The acquisition process for fully leased, fully subsidized Prince Hall Apartments II at 4820 E. Berry St. was "extremely difficult," Jeff Ratliff, AmeriSouth's executive vice president, tells GlobeSt.com. "It was a problem for HUD for years." According to Tarrant County Appraisal District, the asset is assessed at slightly more than $1.3 million.
Meridian Construction Co. of Dallas is readying the crew to start work on the interiors and exteriors, including the immediate addition of air conditioning to the 36-year-old development set on four acres. Ratliff estimates the top-to-bottom renovation will take nine months to complete.
The complex has 11 one-bedroom units with 607 sf; 29 two-bedroom apartments with 777 sf; and 36 three-bedroom floor plans of 904 sf. Rents are $395, $430 and $525 per month. Prince Hall's rents were dropped, but the post-renovation agenda includes a pitch to HUD for an increase, according to Ratliff. "It will be a strong C plus in about six months," he vows.
"We are only looking at HUD deals and not market ones because the market's so soft," Ratliff says. "There's a significant value add once rents are brought up to market...and HAP (Housing Assistance Program) contracts guarantee 100% collection with a 100% occupancy with a waiting list."
AmeriSouth, led by president Ruel Hamilton, secured acquisition and renovation financing, representing 85% loan to value, through Colonial Bank in Dallas. John Brownlee with Holliday Fenoglio Fowler LP's Dallas office arranged the financing.
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