The seller bought the complex at 5201 Curzon St. in Fort Worth 18 months ago for a repositioning. The buyer is a private investor from nearby Keller who used capital from the sale of a rental house in Chicago and teamed it to a five-year loan to take over a fully leased asset, according to Jeff Dowdle with Marcus & Millichap's Dallas office.
"He went hard with a five-day inspection and 100% non-refundable on his earnest money due to the competition," Dowdle tells GlobeSt.com. "I was amazed at the attraction of a smaller size property." In all, five offers were placed for the listing.
Start to finish, the deal took 55 days to seal. LaSalle Bank in Chicago financed the acquisition with an 80% loan-to-value package at a 6% fixed-rate interest. Apartment Lending Corp. of Denver arranged the financing.
According to Dowdle, the seller is moving back to Los Angeles after living in Dallas/Fort Worth for nearly six years and working as an independent real estate broker. The 1031 exchange funds, he says, will be rolled into commercial property that he owns in the downtown.
Treehouse Apartments will remain under owner management, with the new titleholder learning the ropes from the departing one, according to Dowdle. The mix of studios, one-, two- and three-bedroom units range from 850 sf to 1,800 sf. Monthly rents are market or close to it at $600 to $850. "He's looking strictly for a cash-flowing deal," Dowdle explains.
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