FRISCO, TX-A Chicago-based buyer has blocked a second mass marketing of the 262-unit Lodge at Frisco Bridges with an off-market offer to close the deal within 40 days. Two years ago, the asset was tagged for sale at $25 million.
The Houston-based seller, Hanover Co., couldn't be reached for comment on the trade due to the state-ordered evacuation for Hurricane Rita. "If Hanover couldn't get what they wanted they were going to mass market it," Barry Novy with Novy Investments in Houston tells GlobeSt.com about the class A complex at 8568 Warren Parkway. "We gave the timing and the pricing so they wouldn't put it on the open market."
Novy says he approached Hanover, a merchant builder, about possible property sales and its execs laid the Lodge at Frisco Bridges on the table, but with a short window to make the close before it went back into the hands of LaPaul Partners in Dallas to show. Novy placed one call: Marc Goldstein with Covington Realty Partners.
"I knew they could perform fast," Novy says. "Hanover had nothing to lose." The deal closed within 40 days, all cash. The price is being kept under wraps, but Novy says it sold for less than the replacement cost. The 20-acre complex is assessed at $17.5 million by Collin County.
The 94%-leased Lodge at Frisco Bridges, situated in an upscale retail and residential pocket, is a five-year-old development with one-, two- and three-bedroom apartments ranging from 648 sf to 1,340 sf. Rents run from $659 to $1,234.
According to Novy, Covington Realty is a long-term holder. "They love Frisco and they love North Dallas," he says.
Hanover is ending the week with two Dallas-area sales. However, details are sketchy about the sale of the 448-unit Churchill on the Park at 7601 Churchill Way in North Dallas. The six-year-old complex has passed to a pension fund adviser and previous buyer of Hanover product. Its price too is being kept under wraps, but it's in a neighborhood where $90,000 per door is commonplace at the closing table. The 1.56-acre development, tucked into a corridor of prestigious single- and multifamily subdivisions, is assessed $26 million by Dallas County.
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