California Investors Exchange 80-Unit Complex for $3M

At the crux of the closing was a Fannie Mae loan assumption of nearly $2.3 million with eight years left on the term for Lake Bluff at 1365 E. Interstate 30, Peter J. Hartnett with Phoenix-based Hendricks & Partners' Dallas office tells GlobeSt.com. "It was a hard-to-sell deal," he says, citing two lost contracts over the one-year marketing period.

Hartnett says Sherman Campbell of Santa Rosa, CA, passed muster with the lender and laid down 1031 exchange money from a California sale to get control of the 88%-leased complex from a 10-year owner of record, Lake Bluff Apartments of Coto De Caza, CA. The complex traded for $225,000 less than the asking price, according to Hartnett.

With the sale now filed away, the new owner will tackle some deferred maintenance at a complex with a front-row seat at the intersection of the I-30 and George Bush Tollway, where road construction eliminated 439 competing units, Hartnett says. Lake Bluff's units are all two-bedroom, two-bath with 900 sf and renting for $675 per month or 75 cents per sf.