Sabine Place at 1215 Terminal Rd. in Fort Worth is a fully occupied project subsidized by HUD's Housing Assistance Program. In an even split of two- and three-bedroom apartments, monthly rents bring in $634 and $774 per unit for the owner.
AmeriSouth Realty, led by president Ruel M. Hamilton, has spent the past year repositioning the property, which was bought a year ago with a 20% vacancy and needing a rehab. Jeff Ratliff, executive vice president for AmeriSouth Real Estate Services Inc., tells GlobeSt.com that $400,000 went into renovating the 5.6-acre property.
Sabine Place, built in 1967, went to an investor buying for the first time in Texas. Robert Langford with Kamco Property Co. in Dallas introduced buyer and seller to make the $2.25-million deal happen, Ratliff says. "It was an 8% cap on the penny," he adds, citing the built-in upside from HAP's annual 2% rent hikes.
Ratliff says AmeriSouth has ticketed this year to sell some of its HAP stock. "The response was so good on this that we might as well do a couple more," he says. About a half dozen offers rolled in for a listing that spent less than 30 days on the market.
According to Ratliff, the San Francisco investor closed the deal with 80% loan-to-value financing at 5.5% fixed-rate interest. John Brownlee with Holliday Fenoglio Fowler LP's Dallas office arranged the 10-year loan, which amortizes over 30 years, through Nomura Securities International Inc. of New York City.
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