$850,000 Takes Title to 24-Unit Suburban Complex

The Chicago-based Professional National Exchange Corp., intermediary for Arturo Martinez of Richardson, bought the class B-minus Willow Bend Apartments at 101 Hampton Court as part of a 1031 exchange, Peter Hartnett with Hendricks & Partners' Dallas office tells GlobeSt.com. He says it's the second multifamily asset that the investor's bought in Kaufman in less than a year.

At sale time, there was one empty unit in the 1970s-era, townhouse-style complex. The one-bedroom, 700-sf units rent for $500 per month while the two-bedroom, 838-sf apartments bring in $600 per month. "The property's in pristine condition for that vintage," Hartnett says about a deal that pushed through escrow in 60 days.

The buyer teamed 1031 exchange funds from a sale in his hometown and a 10-year loan from LaSalle Bank of Chicago to close a deal at $25,000 below than the ask, according to Hartnett. James Osgood with Dallas-based BMC Capital LLC arranged the financing.The sellers are Willow Bend Oaks Apartments LP, which owned 50.1% of the asset, and Gary Couch of Addison, with a 49.9% stake in the deal. Hartnett says the sellers to date have sold two of four multifamily properties that they own in Kaufman. A third sale is set to close in March, he says.

In recent years, the City of Kaufman and its neighbors have made the radar screens of most homebuilders, retail developers and investors due because it's just a 30-minute drive into the Dallas CBD but development and resale is far more affordable. An estimated 60,000 residents live within a 15-mile radius of Kaufman, the county seat, but that number is projected to grow another 35% in the next two years.