The buyer's first step was to rename the properties to Solara Palms from Canyon Park Apartments and Graycliff Apartments. The properties, sharing a 2222 Graycliff Dr. address, were sold by GMAC Commercial Mortgage Corp. and a limited partnership from Colorado. Brian O'Boyle with Apartment Realty Advisors in Dallas brokered the sale for GMAC, which had foreclosed on Canyon Park, while Tom Warren with Hendricks & Partners' Dallas office handled the Graycliff transaction.
A spokeswoman for Integrity Asset Management Co. in El Paso says the renovation will "start any day now." She says $780,000 has been earmarked for the rehab.
Cash Investments LP, a quartet of investors led by Richard Aguilar, started buying class C product in Dallas/Fort Worth in October 2004. The seven-property portfolio now totals nearly 1,700 units.
Warren tells GlobeSt.com that Graycliff Apartments spent four months on the market, baiting 20 offers due to the $1.67-million ask or about $12,880 per door. Meanwhile, the El Paso group already had dibs on the neighboring complexes so it was the logical buyer for the 85%-leased Graycliff," which "is the doughnut hole" for the multifamily block of 1970s-era product, he says.
The Canyon Park property was 87% leased at sale time. Units average 860 sf; rents are running 60 cents per sf monthly.
"Once the one buyer stepped into the place, he closed it in 45 days," O'Boyle says. "He realized what the upside of the whole deal was."
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