Sanctuary Ventures II LP, representing six limited partners, paid within 2% of the $2.85-million ask by JCTC Investments Inc. of Dallas for Henderson Place Apartments at 170 Henderson St., Chris Deuillet with Marcus & Millichap Real Estate Investment Brokerage Co.'s Dallas office, tells GlobeSt.com. "It was snatched up," he says, citing the 9.1% cap as the sure-fire lure. "It wasn't really broadly brought to market."
Deuillet says not only did the California group offer the highest price for the 2.77-acre development, but its terms were the tightest of the would-be buyers. "They went non-refundable after a 15-day inspection period. He was looking for a stable, turnkey, low-maintenance property and he found it," he says, adding the deed changed hands 60 days after the quiet marketing began. The buyer leveraged the purchase with 80% loan-to-value financing from Chicago-based LaSalle Bank, according to the deal's sole broker.
Henderson Place Apartments, with one vacancy at sale time, has one- and two-bedroom units averaging 883 sf. Monthly rents average $756, with residents paying all utilities. Though rents are market rate for the area, Deuillet says the new owner is "hedging on being a little bit ahead of the curve" by acquiring an asset in an area with job growth from TXU's headquarters office and Wal-Mart. The plan, he adds, is to "raise rents a little bit."
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