DALLAS-With 650 neighboring units, the Bascom Group LLC has scooped up another 208 in an off-market transaction to bolster the entire value-add of the rental block. Sources say the deal was inked for less than $4.3 million.
The latest take-down is Olympus Apartments at 12825 Jupiter Rd. Four months ago, the Irvine, CA-based Bascom picked up the Enfield and Stoney Creek apartments at 11330 and 11333 Amanda Lane. Ryan Akins, Bascom's regional director in Texas, tells GlobeSt.com that the class C-plus Olympus, much like its class B neighbors, will be renovated, re-branded and re-marketed. But at the heart of the deal is a plan to keep it intact as the lowest priced rentals in its northeast Dallas neighborhood. "What we like about this deal was the relative low cost per unit," he says, "and the opportunity to work our way up from the lowest rents in the submarket."
Akins estimates the post-renovation rent will be hiked just 10%. Right now, the average rent is $537 per month. "Our goal in this deal is improving the exterior appearance and interior finishes, but it's still going to be the low-cost alternative in the market," Akins says.
The buyer will spend $4,000 to $5,000 per unit to renovate the 21-building complex. About $100,000 has been allocated for landscaping, irrigation and other upgrades to heighten the curb appeal of the eight-acre tract. "The leasing window was under-utilized," says Jerry Hess, Bascom's acquisitions analyst for Texas, "due to poor signage positioning and the lack of landscaping along the main road." A residents' business center will be incorporated into the leasing office, which also is ticketed for an overhaul. Playgrounds as well are on the "to do" list.
Encore Management Co. of Dallas has been hired to oversee the 90%-leased complex. The one-, two- and three-bedroom units average 819 sf.
The deal closed within 60 days of Scott Seward with Hunsaker Property Co. in Dallas bringing it to Akins. Chad Sanderson, business development manager, managed the financing through GMAC Mortgage Capital in Horsham, PA while Hess steered the closing, which boosted the Texas portfolio to 3,864 units after eight months of buying. And, Akins discloses, another 2,000 units are under contract in Dallas/Fort Worth and Houston.
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