Turnberry Isle Apartment Homes at 15190 Prestonwood Blvd. will continue to be operated "for the near term" as a rental property although it's a prime candidate for a condo conversion, Paul Harris, managing partner of the Southwest office for Chicago-based Moran & Co., tells GlobeSt.com. The 8.6-acre asset is assessed at $14.5 million by Dallas Central Appraisal District.
The property, managed by the Beverly Hills, CA-based Kennedy Wilson Properties Ltd. for one of its state pension fund clients, came to market in September 2004. "A closing by the end of the year wasn't a priority for the seller," Harris explains about the length of time to close the deal despite the absence of a loan assumption. The seller bought the holding from Fairfield Residential LLC of San Diego shortly after it was developed in late 1994.
Turnberry Isle attracted the full spectrum of buyers, including a number of condo converters. "It was in a price range in which different people can play…and it's just 187 units," Harris says. "Interestingly enough, we didn't have too many TIC buyers." Buyers in Dallas/Fort Worth are starting to complain they're unable to compete with the high stakes being offered by TIC investment groups, which have been racking up a record number of metroplex wins.
Turnberry Isle sits along the 11th hole of the Prestonwood Country Club Creekside Golf Course. The property, with four-point occupancy lead over the submarket's average, sits in an affluent area that "heightened investor interest," according to Harris, who teamed with Thad Wetterau, manager of Moran's Southwest office, to broker the sale.
The 10-building Turnberry Isle is a mix of one-, two- and three-bedroom units ranging from 798 sf to 1,395 sf. The monthly rents run from $699 to $1,399.
The Chicago-based Equity owns about 1,000 properties with more than 223,591 units in 33 states. Harris acknowledges some Equity acquisitions have been helping to feed the condo frenzy in select markets, but stresses that's not the immediate plan for Turnberry Isle, the 37th multifamily property for the REIT's Dallas/Fort Worth portfolio.
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