At sale time, the 10-building Cherry Hill Apartments at 5250 Wonder Dr. was 97% leased. Sam Pettigrew, vice president of Dallas-based Cantrell Co., says the listing drew four offers, with the private investor from Boston placing the highest bid.
"It has a good cap rate and great cash-on-cash return," Pettigrew tells GlobeSt.com. According to the marketing flyer, the deal carried an 8.1% cap rate and 22.4% actual cash on return.
Pettigrew says the deal, though, took months to get across the closing table due to the delays by the lender. Wachovia Bank is the servicing agent for the Fannie Mae loan, which was initiated in October 2007. The 10-year note has a 5.94% fixed-rate interest, two years of interest-only payments and 30-year amortization, according to the brochure.
Pettigrew says the buyer is planning a three to five-year hold or longer of the 10-building complex set on 3.34 acres near the intersection of Interstate 20 and Granbury Road. Cherry Hill Apartments has the distinction of being the only multifamily asset in a single-family neighborhood. The first phase came on line in 1963; the second in 1965. Pettigrew says the seller--a limited liability company from Englewood, CO--had invested $1.2 million into renovations after buying it in March 2005. Partnering with Pettigrew were Cantrell's Todd Franks and Elliott Carpenter.
Cherry Hill Apartments' mix is 46% one-bedroom units and 54%, two- and three-bedroom. The mix also includes some four-bedroom apartments. Units range from 448 sf to 1,130 sf. Rents are $495 to $865 per month.
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