Lindahl Picking Up 382 Units in 6,000-Unit Push

Built in 1970, the class C French Road Apartments at 3155 French Rd. won't require much in the way of renovations, says David Lindahl, president of the Lindahl Group. "There are some cosmetic repairs that need to be done and gutters that need to be replaced, but otherwise, this is in really good shape," he says.

As the company adds the 93%-occupied complex to its portfolio, it's preparing to buy another property less than two miles southwest of French Road Apartments. The 182-unit Towne Oaks Apartments at 6550 Lexington Dr. is slated to close June 29.

Lindahl tells GlobeSt.com that Towne Oaks Apartments, currently owned by a Houston company, was a victim of Hurricane Rita in 2005. "The owners were negotiating to get the settlement for the damages, and once they did so, they decided to sell," he says, adding that the sales price will be $7.78 million.

Lindahl has his eye on a third property in the Beaumont-Port Arthur area as well, but it's not yet under contract. "Going into secondary markets like this, we like at least three properties to increase our efficiencies and synergies," he explains.

Lindahl, who owns properties in Tyler, Longview, Dallas and Arlington, is trying to boost the Texas portfolio to 6,000 units by the end of 2008. To date, it owns and manages 1,000 to 2,000 units in the state. "We're bullish on the Texas markets," Lindahl stresses. "The cost to build is becoming so high that building isn't going on quite so strongly in the secondary markets, but those markets are tight due to job growth."

Sold by a local private investor, French Road Apartments is a mix of one-, two- and three bedroom units, averaging 818 sf. The average monthly rent is $640.Towne Oak Apartments, built in the 1980s, has one- and two-bedroom units that rent for $400 to $600 per month. Jeff Patterson with Apartment Realty Advisors' Austin office is representing Lindahl on both transactions.