The Garden Grove, CA siblings, forming a limited liability company, were required to put down 15% and take over a loan with a fixed-rate 8% interest with a term through 2011 to get the deed to 14140 Haymeadow Dr. in Dallas, Chris Deuillet with Marcus & Millichap Real Estate Investment Brokerage Co., tells GlobeSt.com. The Horsham, PA-based GMAC Commercial Mortgage Corp. holds the note for the first-time Texas buyers.
Deuillet, the deal's sole broker, says the buyers swept into town, saw the one-acre property and made a quick run with a full-price offer and a three-day due diligence. The tightening of the terms felled the competitors, including one who had placed a contract, according to Deuillet.
The six-building Northwood Apartments, with three units empty, is in ready-to-go condo conversion condition, Deuillet says, adding one of the new owners will be moving from California to take over the complex's management. "The way it was priced we had to find someone to own and operate it," he says. The one- and two-bedroom units average 850 sf; rents average $650 per month. The broker says the upside will come from shaving expenses with the in-house management and the leeway to hike rents in the 21-year-old complex.
The seller is a local private investor from Richardson who is liquidating a multifamily portfolio. The last asset is under contract, according to Deuillet.
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