First-Time Texas Buyer Pays $1M Plus for 32-Unit Complex

The winner not only was the highest of three offers for the 220 N. Jupiter Rd. complex, but had 1031 exchange funds to spend from a commercial real estate sale in Southern California, says Christopher Deuillet with Marcus & Millichap Real Estate Investment Brokerage Co. in Dallas. He tells GlobeSt.com that the first-time Texas buyer was intent on making the close so Whisperwood Apartments could be cross-managed with one that her relative owns right next door, the 32-unit Jupiter Place.

In addition to cross management, Deuillet says Whisperwood is starting a second consecutive year of high occupancy so "it's time to raise rents." The new owner, who has a $20 per month window, also has an all-bills paid property with units that are sub-metered "so they're there when it's the right time to use them," he says.

Deuillet and John Barker, also with Marcus & Millichap's Dallas office, had Whisperwood Apartments on the market six weeks for $1.06 million. Deuillet says the close was made with an 80% loan-to-value financing arranged by Marcus & Millichap Capital Corp. Deuillet says the 10-year loan has a fixed-rate interest in the high 6% range. The deal closed at an 8.18% cap rate.

Whisperwood's seller, BPV Inc. of Dallas, put the complex on the market because it's the smallest one that they own, according to Deuillet. "This is really more time intensive than they wanted," he explains.

The 42-year-old Whisperwood is situated on 1.1 acres within walking distance of a DART light-rail station. The mix contains 22 one-bedroom units with 734 sf and the two-bedroom balance has designs of 800 sf and 900 sf. One-bedroom units are getting $570 per month and two-bedrooms reel in $670.