Despite the fast move to claim the Pine Branch Apartments at 5811 Pineland Dr. in Dallas, the buyer and seller worked through an 80-day process to clear a HUD-insured loan so the all-cash deal could cross the closing table with new financing, Chris Deuillet, with Marcus & Millichap Real Estate Investment Brokerage Co. in Dallas, tells GlobeSt.com. The Chicago-based LaSalle Bank funded the deal with a 30-year loan bearing a 6.44% fixed-rate interest for 10 years and a floater for the duration, he says. The financing represented an 80% loan-to-value ratio.
Deuillet credited the strong interest from private investors to the complex's 96% occupancy and positioning within walking distance of schools from kindergarten through grade 12. The Fort Worth seller, looking to exit the multifamily and trade into oil and gas, tossed the win to a buyer with "tighter terms," Deuillet explains. "She had a short inspection period and her money went non-refundable right after that."
According to Deuillet, the asset won't be getting a name change or undergoing any major renovation, but there is a rent hike looming in tenants' futures. Monthly rents run from $312 to $650 per month for efficiencies, one- and two-bedroom units, ranging from 276 sf to 1,184 sf. The pro forma rents are $335 to $660.
Richard Keeling with Henry S. Miller Commercial in Dallas represented the buyer, who exchanged gain from the sale of a smaller multifamily property in California for the 27-year-old complex on 4.3 acres. The Henry S. Property Management Group is overseeing the asset for the out-of-state owner.
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