The private investor from Angwin, CA, bested a handful of would-be buyers with the top offer for Oak Grove Apartments at 511 E. 6th St. in Irving, which came to market because the 11-month local owner needed to drum up cash to bail out another multifamily property in the Dallas area, John Barker with Marcus & Millichap's Dallas office tells GlobeSt.com. All in all, the deal, he says, "went pretty smooth" after being on the market 30 days and closing 70 days later. Al Silva, also with Marcus & Millichap in Dallas, assisted with the transaction.
The buyer satisfied the exchange from a multifamily sale in his homeport and teamed proceeds with a 10-year loan from the Chicago-based LaSalle Bank to secure the class C property, according to Barker, who single-handedly brokered the sale. The financing cleared with a 75% loan-to-value ratio and 6% fixed-rate interest.
"It was more of a cash-flow appreciation deal," Barker explains. "He's got a little room to move on the rents." He estimates Oak Grove units could get another $25 to $30 per month for the new owner. The three-building complex's one-bedroom units, with 550 sf, now rent for $500 per month, all bills paid. Barker says Majestic Realty of Dallas has been hired to oversee the property, developed in 1958.
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