ARLINGTON, TX-A San Diego-based investment group has packaged its first repositioning play in North Texas. The inroad is 213 townhouses that will undergo a near $800,000 rehab, including the repair of 50 flood-damaged units.
Calypso Capital Partners Inc. and Atlantic Realty Group LLC expect to start work this month on Glenbrook Townhomes at 600 W. Pioneer Parkway. Legend Asset Management, a local firm, will manage the complex, positioned on 6.79 acres at a high-profile intersection, and oversee the overhaul, which includes a new name, roofs and property's curb appeal, says Jeff Dowdle with Marcus & Millichap Real Estate Investment Brokerage Co.'s Dallas office.
Silvergate Bank, based in La Jolla, CA, provided an initial advance for 70% of the $4.62-million purchase price, with another $712,500 earmarked for re-tenanting and rehab. The floating-rate loan with a three-year term was cleared by "a lender that looks for value-add opportunities," Ross Lyle in Silvergate's Dallas office tells GlobeSt.com. "This property fit their profile." He says the deal previously crossed his desk, but other would-be buyers "weren't able to put it together."
Dowdle, who brokered the sale with his brother Mark, says the new owner can bump rents 25% to 30% once the renovation is done. Glenbrook Townhouses were 70% occupied at closing, but 95% filled if the down units are pulled from the equation, according to the Marcus & Millichap lead broker. "He should stay full once he renovates it," he says.
The 36-year-old Glenbrook Townhomes consists of 125 one-bedroom, 87 two-bedroom floor plans and one four-bedroom unit. The one- and two-bedroom units are 700 sf and 900 sf and the largest is 1,450 sf. Rents are $460, $550 and $750 per month.
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