"The buyers' upside is to raise rents," Al Silva, an investment associate in Dallas for Marcus & Millichap Real Estate Investment Brokerage Co. tells GlobeSt.com about the 95%-leased complex. "There is room for an 8% bump going in to achieve some upside right away." He says the seller bought the all-bills paid complex at 716 N. Plymouth St. in North Oak Cliff two years ago, renovated, re-tenanted and bumped the rents twice before putting it up for sale.
"It took awhile to plug the right buyer in there," Silva says, noting two contracts fell out during the marketing and re-marketing which took nearly six months. The seller is a private investor from Concord, CA.
Silva says the first-time buyers in the metro secured a 10-year loan at a fixed-rate interest from LaSalle Bank in Chicago. The financing represented an 80% loan-to-value.
Silva credits the renovation and location as setting up the incentive to buy. Greenwood Apartments is situated on 2.2 acres within walking distance of a school and golf course in addition to easy freeway access to Interstate 30. The complex, built in 1964, is made up of one- and two-bedroom apartments, ranging from 750 sf to 950 sf. At sale time, the units were tagged at $525 to $700 per month.
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