From application to closing, the financing for the class A asset at 1712 Martin Dr. cleared all desks within 50 days, according to Jason Rice with Dallas-based Quantum First Capital. He tells GlobeSt.com that the 20-year loan has 10 years of interest-only payments at a 5.52% fixed-rate interest and 30-year amortization. The Fannie Mae DUS structuring through Bethesda, MD-based Green Park Financial is a first mortgage, allowing for supplemental financing after one year to pull out additional funds "if they choose," he adds. The buyer teamed the loan to 1031 exchange funds to get its first deed in Texas.
In handing off the 92%-leased asset, the Dallas developer included an additional 2.45 developable acres as part of the exchange to build in more upside to the deal. Rice says in all likelihood that the buyer will build the 30 additional units allowed on the site.
The eight-year-old Southgate Glen Apartments, positioned on 8.77 acres across from Weatherford College, has one-, two- and three-bedroom units, averaging 807 sf. The average rent is 88 cents per sf. Capstone Management Co. of Dallas has been retained to lease and manage the property, which is along Interstate 20 west of Fort Worth.
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