FORT WORTH-The Aurora, CO-based Pauls Corp. has closed the book on Texas, hawking the 673-unit Canyons Apartments to a private investor from the West Coast. The deal has crossed the finish line with a $40-million loan.
The Canyons, a 42-acre footprint developed in 2000 and 2004, is one of the largest multifamily properties in the city. The complex, situated at 2751 River Park Dr., was about 90% leased at sale time.
Neither the broker nor the lender can say too much about the deal due to the seller's confidentiality clause. What has been confirmed is the developer has sold its last holding in the state. Details have yet to surface, though, about one hand-off, Quarry Townhomes at 250 Treeline Park in San Antonio.
Brian O'Boyle of Apartment Realty Advisors in Dallas says the Canyons Apartments was on the market 120 days, with institutional and private investors stacking up offers. "It got a tremendous amount of activity because of its location, age and amenity package," he says. "It's a great property in a good location, well built and very good curb appeal."
All he can reveal about the buyer is it's West Coast capital that included 1031 exchange funds. The upside, he adds, lies in the ability to raise rents in the future. Monthly rents are $1.01 per sf, on average, for the one-, two- and three-bedroom apartments. The unit average is 984 sf.
Acquisition capital came from Calabasas Hills, CA-headquartered ARCS Commercial Mortgage Co., which packaged the $40-million loan as a Fannie Mae facility in an 18-day spin from application to closing. "The reality is it went Fannie Mae because speed was important. The big thing was hitting the closing date," Richard Briscoe, the lender's production executive in Dallas, tells GlobeSt.com. "Speed was the biggest issue with this one. That really helped us drive home where we'd take this asset." The end result was a 10-year term, 5.25% fixed-rate and 30-year amortization.
Tarrant County has Canyons' first phase assessed at $25.6 million. Roll in the second phase, factor in the bare minimum leverage of 50% and the upshot is a deal that brought at least $60 million.
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