Seller representative Tom Burns, associate partner with Hendricks & Partners' Dallas office says MC Cos.' plan is to upgrade the units and take them to market rents. Upon renovation, rent on the apartments 5401 Independence Pkwy. could increase anywhere from $.10 to $12 per square foot, Burns says.
"Hall had gone in and renovated a handful of units, and was able to get $135 to $150 over the market," Burns tells GlobeSt.com. "As for the property itself, the units themselves aren't in serious need of renovation. They just need a little updating."
Hendricks & Partners partner Tom Warren worked with Burns and senior investment advisor Jay Gunn on the transaction. Warren says the Frisco, TX-based Hall Financial Group received 17 offers for the 1980s complex, primarily from value-add, private capital players. "The buyer brought the most enthusiasm and interest and were the most aggressive when it came to getting their name in the hat," Warren says. Furthermore, he continues, MC Cos. made one of the most aggressive offers.
"As it turned out, with the market deteriorating the way it has, we picked the right horse," Warren adds. "This buyer was able to jump over significant hurdles in the capital markets to get the deals done."
The 97%-occupied Harvestree Apartments is on 11.3 acres and consists of two-bedroom apartments, ranging from 873 square feet to 1,189 square feet. Market rents are between $725 and $860 a month.
MC Cos. bought the 308-unit Bay Harbour Apartments at 2500 E. James St. in Baytown TX and the 255-unit Cooper's Hill Apartments at 739 W William Cannon Dr. in Austin, TX last summer. The company has extensive holdings throughout Arizona as well.
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