TEXARKANA, TX-With one city deed in hand, a Rockland, MA private investor has grabbed a second one in an economy-of-scale play for the East Texas border town. The 184-unit, class B multifamily asset changed hands with 80% loan-to-value financing totaling $5.78 million.
At sale time, the Park at Summerhill, located at 5201 Summerhill Rd., was 93% occupied in a mix of mostly one- and two-bedroom apartments, averaging 756 sf, and median monthly rents of $529. "They think they can move the rents a little bit," says Jason Rice with Dallas-based Quantum First Capital. "And, they have economies of scale because they have the other deal there." Jordan Cortez with Apartment Realty Advisors' Dallas office brokered the sale for the local seller.
Rice says the buyer secured a seven-year loan with the first three years as interest-only payments and a 30-year amortization schedule. The fixed-rate interest was in the low 6% range. "We caught a break," he tells GlobeSt.com. "It was right at the time when rates had started to come down." He says the buyer also owns two more properties in Texas and is under contract for two more.
Rice explains the Park at Summerhill also stacks up as a value-add play due its location. It is positioned beside a new retail and residential project and a city with solid growth demographics. Several freeway projects under way or on the books as is a $75-million proposed expansion of the Texas A&M campus. The city is split between Bowie County in Texas and Miller County in Arkansas, an area favored by outdoor sportsmen, second-home developers and distribution companies because it's along the Interstate 30 Dallas-Memphis route.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.