The just-bought asset is the 90%-occupied Broadmoor Apartments at 8037 Elizabeth Lane. "He saw a value there. He knew the deal would go and wanted to lock it up," John Barker, senior associate in Dallas for Encino, CA-based Marcus & Millichap Real Estate Investment Brokerage Co., tells GlobeSt.com.
The one-bedroom units of 650 sf rent for $450 per month. "There's room to raise rents 5% to start," Barker says. The buyer, who has a small multifamily portfolio in Dallas/Fort Worth, got a property with an 8.18% cap rate at closing.
The sale ends a four-year hold by a private investor in Arlington, who handed off a class C deed to a 1980s-era asset in good condition, according to Barker. The Washington investor secured acquisition financing from LaSalle Bank in Chicago. Steve Sieling with BMC Capital Inc. in Dallas arranged a five-year package with an 80% loan-to-value ratio at a 6% fixed-rate interest.
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