548-Unit Oak Villas Sells -- Again

IRVING, TX-Oak Villas Apartments now belongs to a Brooklyn, NY buyer following a year-long marketing effort. The buyer, operating under the entity name Oak Villas Apartments LLC claimed the 1960s complex with plans to upgrade it.

Tom Burns and Jay Gunn, partners with Hendricks & Partners’ Dallas office, represented seller Orix Capital Markets LLC, the “B” piece buyer that foreclosed on the asset in 2009. Burns tells GlobeSt.com that this is the third time within the past 10 years that he and his colleagues have sold the property at 2414 N. MacArthur Blvd.

“We sold it to Miles Properties in 2001, and Miles spent about $6.4 million to rehab it,” Burns says, adding that rehabbing involved installing individual climate control, new roofs and new windows. Hendricks and Partners then brokered the sale in 2007 to a Los Angeles buyer for about $25 million.  Then the economy went south, the owner defaulted and Orix foreclosed.

Burns says Oak Villas was widely marketed and attracted 27 offers, mostly from private sources. The Brooklyn buyer stood out in several respects, not the least of which is that the ownership is experienced and owns and operates other apartments in the Dallas area.

“They saw the upside and knew what the property had sold for in the past,” Burns explains. “Plus it’s located on MacArthur, north of (State Highway) 183, which is a great location.”   The transaction was a value-add play, and the new owner plans to increase rents once upgrades have been completed. The owner is looking for similar investments as well.

ACQUISITIONS/DISPOSITIONS

* ARLINGTON, TX – Internal medicine doctor Todd Nguyen, MD acquired an 11,000-square-foot building at 1119 W. Randol Mill Rd. near Arlington Memorial Hospital.  Theron Bryant with SCM Real Estate Services represented the seller and Trish Dinh with Pearland Realty represented the buyer.

* FORT WORTH -- Rockbay Properties II Ltd., parent of more than 40 Pancho's Mexican Buffet locations, sold a closed restaurant in west Fort Worth to a private investor from Houston, TX. Brian C. Scott and Karen Simon with Bradford Commercial Real Estate Services brokered the sale for the Dallas-based chain. The 8,438-sf Pancho's is located at 8312 Camp Bowie West, a 1.78-acre tract with 144 parking spaces.

* PHOENIX -- FRI Continental LLC of Tempe, AZ acquired Continental Apartments, a 48-unit multi-family property at 1030 N. Third St..  Brian Smuckler and Jeff Seaman of CBRE’s Phoenix office represented the buyer and the seller, PMCM I LP of Gilbert, AZ in negotiating the $1.25 million sales transaction.   

* TEMPE, AZ -- BlackRidge Real Estate Group acquired Normal Junction, a two-building, 140,000-square-foot warehouse/distribution property for $7.65 million. Cushman & Wakefield Inc.’s Mark Detmer, Bo Mills, Will Strong and Jackie Orcutt represented both the seller and buyer in the transaction. The team, which has served as exclusive leasing agent for Normal Junction since 2000, has been retained to continue this role for the new ownership.

* SURPRISE, AZ – A T.G.I Friday’s 7,458-square-foot ground lease at 14127 W. Bell Rd. has changed hands for $1.46 million. Jamie Medress and Mark Ruble with Marcus & Millichap Real Estate Investment Services’ Phoenix office represented the seller, a limited liability company.  The buyer, a limited liability company, was represented by Jason Vitorino and Philip Levy, investment specialists in Marcus & Millichap’s Dallas/ Fort Worth office. 

LEASES

* ARLINGTON, TX -- 401K Plus Inc. a long-term tenant at the Cordovan Park Office building at 5840 - 5850 W. Interstate 20 renewed its 6,700 square-foot lease for an additional term. The two-story office building is undergoing a $250,000 first phase of upgrades to reinvigorate the lobby and all common areas, including ADA compliancy inside and out. Beaux Riley with SCM Real Estate Services represented the landlord in this transaction.

*  DALLAS -- The Cogent Group LLC has renewed 6,065 square feet of office space in Danari Office Building I, 15150 Preston Rd. Sharon Friedberg and Melanie Hughes with Bradford Commercial Real Estate Services negotiated the direct deal on behalf of the landlord.

* HOUSTON -- Hollman Corp. expanded and renewed a 34,073 square-foot office lease at 333 North Belt at 333 North Sam Houston Pkwy. Steve Rocher, Kristen Rabel and Louann Pereira of CBRE represented the property owner, Janez Properties Inc., in this transaction. Andy Iversen, Reggie Beavan and Joshua Brown with Jackson Cooksey represented the tenant.

* HOUSTON -- Houston Advantage Insurance Brokerage Inc. renewed a 3,370 square-foot office lease at 6363 Woodway, an 11-story office building in the Galleria/Uptown area. Steve Rocher, Kristen Rabel and Louann Pereira of CBRE represented property owner, Unilev Capital Corp. Stephen Kradjian with Situs represented the tenant.

* HOUSTON – VAALCO Energy Inc. renewed and expanded a 19,742-square-foot office lease at 4600 Post Oak Place, which is professionally managed and owned by Unilev Management Corp. Steve Rocher, Kristen Rabel and Louann Pereira of CBRE represented the property owner. Jon Silberman and Kelly Torian of NAI Houston represented the tenant.

* HOUSTON -- Ytterberg Deery LLP renewed and expanded its space to 12,363-square-feet at 3555 Timmons in Houston’s Greenway Plaza submarket. Steve Rocher, Kristen Rabel and Louann Pereira of CBRE represented the property owner, Timmons Lane Inc. David Guion and Kevin Snodgrass of Cushman & Wakefield Inc. represented the tenant.

* PHOENIX – Bar-S Foods Co. is relocating its headquarters from Central Avenue to the Camelback Corridor, thanks to an 11-year, 35,000-square-foot lease. The manufacturer of processed meats and hot dogs will move from 3838 N. Central Ave. to 5090 N. 40^th St. John Pierson with Jones Lang LaSalle’s Phoenix office brokered the transaction.

CAPITAL MARKETS

* BILOXI, MS – Dawn Properties Inc. obtained $13.4 million in refinancing for the 195-room Four Points by Sheraton Hotel at 940 Beach Blvd. Travis Anderson and John Bourret with Holliday Fenoglio Fowler LP’s Houston office placed the three-year, floating-rate loan with Bank of the Ozarks.

* BEAUMONT, TX -- Berkadia Commercial Mortgage LLC’s Jonathan Gilfillan and Cutt Ableson brokered a $3.84 million loan with an 80% LTV for the acquisition of the class B, 110-unit Westhaven Apartments. Buyer SMV Westhaven LP obtained the 10-year, fixed-rate loan through Fannie Mae’s DUS program. The loan features a one-year-interest-only term followed by a 30-year amortization schedule.

* BEAUMONT, TX -- William Luedemann with NorthMarq Capital’s Houston office arranged first-mortgage financing to the tune of $1 million for the 89,000-square-foot San Jacinto Building. Financing was based on a 10-year term and a 10-year amortization schedule and was arranged for the borrower by NorthMarq through its correspondent relationship with StanCorp Mortgage Investors LLC.

* HOUSTON -- Interra Properties obtained a $4.5 million loan to acquire 112 units of the 128-unit High Ridge Business Park from US Bank as REO owner/seller. The non-recourse loan, secured by Gabriel Silverstein of Angelic Real Estate LLC, included a 100% funding provision for good news moneys (TI/LC costs) during lease up to stabilization. The units are at 42% occupancy. The loan was for three years with a fixed interest rate, interest only, and has provisions for two additional one year loan extensions. 

EXECUTIVE MOVES

CBRE’s Houston office has announced the following promotions:

* Matt Dickson to first vice president.

* Elliott Hirshfeld to senior vice president.

* Jessica Ochoa from senior associate to vice president.

* John Pruitt to executive vice president.