The 1031 exchange investor acquired the class C complex at 812 S. Center St. from a private partnership in Irving. "This isn't going to be his last deal here," Al Silva with Marcus & Millichap Real Estate Investment Brokerage Co.'s Dallas office tells GlobeSt.com. The inbound owner has more to spend to satisfy the exchange of a sale in his home state, he explains.
Silva says the all-cash deal closed at a 10% cap rate. "He pretty much bought this deal for the cash flow," he says. "He's going to improve and raise the rents."
The renovation plan calls for sub-metering the units in the all-bills paid complex as a means to push the rents, according to Silva, who partnered with Marcus & Millichaps John Barker to sell the asset. The 10 two-bedroom townhouses of 900 sf rent for $650 per month while the 24 one-bedroom units of 570 sf are getting $475 monthly.
Silva says the Raintree listing was on the market three months, attracting a dozen offers. The exchange buyer's top offer closed one day after the contract was placed, he adds.
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