Las Vegas Investor Bags 282 Units for $13M

The Burn Brae Apartments at 4200 W. Northgate Dr. is a class B, 93%-leased asset that was sold by RMI Development Co. of Las Vegas, which has its last Texas asset on the market in Houston. The seller, a seven-year owner, will remain in place to lease and manage the 23-year-old complex, paced through an exterior renovation just last year.

Tom Burns and Tom Warren, both in Hendricks and Partners' Dallas office, say 10 offers went on the table for the all-cash proposition, with the Las Vegas investor's contract clearing all hurdles in three months. "We had to find the right buyer in the right situation," Burns tells GlobeSt.com.

"It closed on the last day of the buyer's rate lock," Warren adds. Buyer of record, V Chancellor LLC, supplemented acquisition financing with 1031 exchange gain from a multifamily sale in Las Vegas. The deal closed at a 5.8% cap rate.

The buyer's upside for her only Texas property is steadily declining concessions, now less than a month instead of six weeks, and the market's uptick now and over time. "She's going to be a long-term holder," Burns says.

As the Mid Cities-Irving area picked up steam, Burn Brae's concessions declined. "It's been going down rapidly," Warren says. "That's one of the reasons we were getting people closer to the strike price."

"We feel like we achieved a strong price for the property," Burns chimes in about a swap that closed "on the high side" of the flurry of recent sales in the Irving area.

The 15-building Burn Brae, positioned on 11.8 acres near Texas 161, is a five-floor plan mix ranging from a one-bedroom unit with 629 sf to a two-bedroom townhouse with 1,044 sf. The unit average is 787 sf. The average rent is 82 cents per month or $642.