PLANO, TX-A Dallas investment group, making its first push into the multifamily sector, has spent $1.15 million or $106,000 per unit for a 39-apartment complex in ready-to-go condo condition.
Texas American Capital Ltd. got a 90%-leased property at 3522-3634 Hilltop Lane, a five-acre tract developed in the mid-1960s. In less than two weeks, Hilltop Townhomes generated six offers, setting up a 30-day drive from contract to closing, John C. Barker, senior associate in Dallas for Marcus & Millichap Real Estate Investment Brokerage Co., tells GlobeSt.com.
To date this year, Barker has sold about 100 units for Hilltop Properties Ltd. of Dallas, which owned the Plano property for the past decade. He says the seller is now out of the multifamily business with the sale.
Hilltop Townhomes sold at close to a 6% cap rate. The three-bedroom townhouses, ranging from 1,260 sf to 1,733 sf, bring in monthly rents from $925 to $1,050. Barker says the buyer most likely will go for the conversion since the units are already mapped for the play. Texas American partner John Hickman handled talks for the buy side, which used 1021 exchange funds from the sale of single-family rentals to help finance the acquisition.
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