Godinez-Alcala LP, a family investment group, was one of 15 would-be buyers for the 8303 Skillman St. complex, which underwent a $10,000 per unit renovation two years ago by its long-time owner, Miles-Regal Brook LLP of Atlanta. Tom Burns, senior investment adviser in Dallas for Phoenix-based Hendricks & Partners, tells GlobeSt.com that the deal generated steep interest although there are five more years left on a land-use restriction agreement requiring 60% of the residents to earn 60% or less of the area's median income. Still, he admits, "that was hard for some people to grasp." The restriction went in place in 1978 when Miles developed the 6.24-acre tract.
Regal Brook was 93% leased at sale time. The one-, two- and three-bedroom mix has units averaging 828 sf. The average rent is skewed due to the rent requirement, but market rate is $599 per month for vintage product in the Skillman Street corridor.
Burns, the only broker working the deal, says the other hurdle to overcome was operational. "The operations had struggled," he explains, "but the buyer had enough vision to see that Dallas is a safe place to park your money. California buyers are riding the wave. They can see all the fundamentals in Dallas are right on."
The family investment group, which plans to bank the property for the long term, secured a 10-year loan through LaSalle Bank in Chicago to close the deal. Kirk Slimmer with TransLending Corp. in Denver arranged an 80% loan-to-value financing.
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