Seller Prunes Another 328 Units From Portfolio

Dallas investor Brian Schwartz of Lane Star LP placed a full-price contract for $3.05 million to get the eight-year owner's immediate nod for Rayo de Sol Apartments, 160 units at 2200 W. Rochelle Rd. in Irving, Peter J. Hartnett with Phoenix-based Hendricks & Partners' Dallas office, tells GlobeSt.com. Meanwhile, a TIC buyer from Richmond, CA has claimed its first deed in Dallas/Fort Worth with the $3.55-million pick-up of the 168-unit Dayton Square Apartments at 2029 Dayton St. in Haltom City.

Hartnett, the sole broker for both deals, says the limited liability company seller has hawked 10 properties in two years, but still has 2,000 units on the market in North Texas. Four properties, totaling 1,018 units, should change hands within six weeks, he says. The next round includes a 276-unit in Grand Prairie that's also headed into the hands of the TIC group.

Hartnett says the 96%-leased Rayo de Sol "was one of the hottest deals I've ever had." More than 80 inquiries came after the Dallas investor's contract moved into escrow, he says. "It's cash flowing," he explains. "Any deal I get under $20,000 in a decent location that's cash flowing, I can sell in the first day."

Rayo de Sol contains one-, two- and three-bedroom units, ranging from 450 sf to 960 sf. Monthly rents in the all-bills paid complex go from $435 to $760, without concessions. Built in 1965, the Dallas County complex sits on 2.2 acres.

The 94%-leased Dayton Square was on the market awhile, but it generated a half dozen offers, according to Hartnett. "It's a coupon deal that was bought on existing cash flow," he adds.

Excluding concessions, Dayton Square is a mix of one-, two-, three- and four-bedroom units ranging from 585 sf to 1,280 sf. Its monthly rents run from $500 to $825. Dayton Square, a five-year hold, was built in 1970 on a 5.5-acre tract in the Tarrant County suburb.