Sources familiar with the West Texas market say the complexes most likely traded for $40,000 to $45,000 per unit. The class B complexes were 95% leased at sale time.
Tammi Adams, assistant director of acquisitions and dispositions for Haley Associates LP, says a significant capital investment will be put into the 1980s-era complexes, particularly the 415-unit Willow Hill at 4421 82nd St. "The idea is to return the property to its former glory," Adams tells GlobeSt.com.
Haley Associates already owns one property in Lubbock, the Woodcrest Apartments at 5402 66th St. Adams says Willow Hill and the 224-unit Meridian Park at 5710 4th St. not only build in economies of scale for Haley's management company, Dial Equities, but both are superb locations. "Willow Hill has great frontage on retail and Meridian is close to Texas Tech University and right on the bus line route," she adds.
Meridian Park Apartments and Willow Hill Apartments contain efficiencies and one- , two-and three-bedroom units. The average unit is 850 sf; monthly rents average 73 cents per sf.
Adams says Haley has two more closings scheduled later this month, both properties in Midland, and has yet another planned for an asset in Gretna, LA. "We wanted to add 2,500 units to our portfolio by yearend and we're roughly halfway there," she says.
The Bridge Partners' portfolio included four complexes in Abilene. Jordan Cortez, director of secondary markets with Apartment Realty Advisors' Dallas office, says the seller has pulled the rest of the portfolio from the market, but could offer them as one-off deals down the road.
Cortez says the Lubbock listing attracted "numerous offers." He teamed with ARA Dallas' managing partner Brian O'Boyle and colleague Michael Girard to represent the seller. "The Lubbock market, as a whole, has really picked up steam, with the market improving significantly over the past 12 months," Cortez says. He cited upticks in absorption in the city's inventory glut and overall occupancy and fewer concessions than before.
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