The highest of 15 offers for the 1300 S. Adelaide St. property came from a 1031 exchange investor from Seattle, says Christopher Deuillet, senior associate in Dallas for Marcus & Millichap Real Estate Investment Brokerage Co. Oak Ridge was 85% filled when it sold after gaining 15% from a lease-up campaign by Migneault Property Management Co. of Dallas to let the deal close at a 10% cap rate on actuals, "which is kind of unheard of right now," he tells GlobeSt.com.
Deuillet says the seller also paid off an existing loan to set up a free-and-clear trade after the deal lingered in escrow nearly four months due to the assumption process. "So we turned it around and made it new financing. Once we did that, we closed it in 45 days," he says. "The property was turned around pretty quick and sold on that upward trend in occupancy." The proposed financing was marketed as a 25-year loan with a 6% fixed-rate interest.
The 11-building Oak Ridge is situated on four acres in an emerging retail corridor along the main street leading into town from the interstate. The new owner, who sold a commercial property in Seattle, got a 39-year-old complex with 38 one-bedroom apartments, ranging from 516 sf to 586; and 69 two-bedroom units with 764 sf to 948 sf. Monthly rents begin at $550 and top out at $750.
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