To end a three-year hold, Premiere Group of Cos. of Vancouver, BC, sold the 91%-leased Astoria Apartments at 5636 Spring Valley Rd. to Michka LLC of Oxnard, CA, one of three offers that rolled in during three months of marketing, Scott Lamontagne with Marcus & Millichap Real Estate Brokerage Co. in Dallas tells GlobeSt.com. "He wanted to exit the Dallas market because he didn't feel it was performing well enough," Lamontagne says.
The buyer secured a $4.27-million loan from Atlanta-based Column Financial Inc. The 10-year financing has a 30-year amortization, 67% loan-to-value ratio and 1.2x coverage, according to Column Financial. BMC Capital LLC of Dallas arranged the financing.Sunridge Property Management of Dallas has been brought on board to run the 27-year-old complex, which has units averaging 691 sf. Monthly rents average $643.
Lamontagne says the upside will come from burning off $250,000 in concessions and lease-up of the one- and two-bedroom apartments. The complex, which includes 13 townhouses, was renovated in 1995 and 2001. Lamontagne says there is a $200,000 hold-back for repairs to the 17-building complex on 6.6 acres.
The original listing carried a 6% cap rate, but the price was recast to get slightly more, according to Lamontagne. "It's fairly low for a B property, but there is some upside on a pro forma basis that will be closer to a 9 cap," he says.
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