"The thinking strategy is it's down the street from the stadium and will cater to blue-collar workers for the entertainment district development," Chris Deuillet, senior associate in Dallas for Marcus & Millichap Real Estate Investment Brokerage Co., says about the 1017 W. Pioneer Parkway sale. "He's planning some renovation and raising rents because there's such good occupancy." Deuillet estimates the post-renovation rate could add as much as $25 per unit to some monthly rates, which now range from $425 to $745 per month.
Deuillet tells GlobeSt.com that the buyer secured a 10-year loan from LaSalle Bank in Dallas to close the deal for the all-bills paid complex. The 80% loan-to-value financing has a 30-year amortization and 6.8% fixed-rate interest.
Deuillet says the 3.7-acre holding pulled 10 offers during a two-month run on the market. "There was a constant flow of activity on it because of its location, good occupancy and being offered as all-cash," he explains.
The seller is a local family that includes a broker who "knew the timing of the market," Deuillet says. The decision to sell also was driven by a plan to cash out of a 13-year hold and put the gain into pools for retail and multifamily development and retirement, according to the seller's broker.
The 35-year-old mix of efficiencies and one- and two-bedroom apartments are 320-sf to 1,100-sf layouts. The partnership, which also owns one multifamily property in Fort Worth, has hired Trigon Management Co. of Dallas as overseer. Meredith Wideman of Lone Star Commercial in Lubbock represented the buyer.
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