DALLAS-In an off-market transaction, Van Cliburn, a name not often linked to commercial real estate, has sold a three-property multifamily portfolio for $15.2 million to a Los Angeles-based investment group. The deal allowed the renowned pianist to exit the apartment sector and bumped the buyer's North Texas holdings to more than 600 apartments.
Armore Ltd. made the close with a cross-collateralized, Fannie Mae loan for $10.6 million. Cliburn, who owned the market-rate properties nearly two decades, sold the 126-unit Copperchase Condominiums at 2710 Golden Creek Lane in Arlington; 128-unit Pines of Palos Verdes at 4900 Via Ventura in Mesquite; and 140-unit Charter Oaks Apartments at 105 E. Harwood Rd. in Euless. The buyer, though, has several more multifamily properties under contract in the region and expects to make the next close within 45 days, William E. Cave, vice president in Dallas for the New York City-based CharterMac Mortgage Capital, tells GlobeSt.com. "They are adding whenever they see opportunities," he adds.
As soon as Armore got the deeds, its in-house management team started working on the vacancies. The portfolio now is resting at slightly more than 90% occupancy, according to Cave. At sale time, Copperchase was 81.75% filled; Pines, 85.16%; and Charter Oaks, 82.86%.
The three complexes are mid-1980s product. The Copperchase and Pines mortgages are each $4 million and Charter Oaks, $2.5 million. Cave says the properties have little deferred maintenance and upside potential through lease-up.
Cave says the Fannie Mae loan, going full circle in two months, has a 10-year term and 30-year amortization with a provision that the cross-collateralization goes away when the properties, as a portfolio or individually, achieves a 125x debt coverage. "I can't imagine with the way they're managing the properties that it will take any longer than 12 months," Cave says.
The 17-building Copperchase has one- and two-bedroom units ranging from 732 sf to 1,029 sf. Its monthly rents start at $550.
The 18-building Pines also is a mix of one- and two-bedroom apartments and townhouses with 750 sf to 1,092 sf. Rents begin at $610 per month.
Charter Oaks, a nine-building development, has units averaging 703 sf in one- and two-bedroom designs. Its base rent is $403 per month.
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