"This was marketed since 2006, and has been in and out of escrow several different times and for various reasons," says Jeff Eisenhardt, senior advisor with Hendricks & Partners' Houston office. Eisenhardt, who represented the Santa Clarita, CA seller, says before the current buyer, another interested tax credit buyer had the complex at 480 W. Parker Rd. tied up in escrow for close to a year.
"Then they got a new CEO who decided he didn't want to buy and rehab buildings, so they had to walk away from a ton of earnest money," Eisenhardt comments. Shortly afterward, a second buyer signed a contract, went hard with the earnest money, then dropped out of the deal days before it was due to close.
"This is the third or fourth time this had been under contract," Eisenhardt acknowledges. "Since day one, we had a lot of activity on this, but just bad luck with buyers."
McGregor and his partners, who bought the 1970s complex for just under the $4.5-million asking price, plan to invest an additional $500,000 for interior upgrades. Also in the budget is the completion of 16 offline units.
"One of the buildings lost a roof and it destroyed the entire interior," Eisenhardt tells GlobeSt.com. "It had to be rebuilt from the studs up." The former owners began the work of rebuilding, which the buyers will complete.
Situated on 5.1 acres, the 12-building Pecan Shadows Apartments has one-, two- and three-bedroom units measuring from 627 square feet to 1,645 square feet. Monthly rents are between $485 and $975. Occupancy is 88%, minus the offline units.
Pecan Shadows Apartments is the final asset to sell from a three-property portfolio. The 156-unit Granada Terrace at 1301 Avenue A sold in October 2007 to a HUD buyer from Dallas. A California buyer snagged the 135-unit Winkler Villa at 123 Winkler Dr. last April.
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