Westmount Lands 364-Unit Greens Crossing Apartments

DALLAS-An attractive location combined with some good forecasted market potential has enticed Westmount Realty Capital LLC and a local operating partner to buy the 364-unit Greens Crossing Apartments. The duo plans to invest $1.2 million in the 1980s-built multifamily property, with an eye toward filling it up and pushing occupancy rates.

"If you look at it from a macro perspective, you see the continued move away from home ownership," comments Clifford A. Booth, president and CEO of Westmount. He tells GlobeSt.com that there is plenty of multifamily property construction going on locally and nationally – but much of that is on the higher end. The 74% occupied Greens Crossing at 10700 Woodmeadow Pkwy. is a B-minus asset, but the right investment and upgrades combined with growing renter demand for lower-priced properties could lead to a good return on investment for Westmount.

"This property has great exposure and visibility on Interstate 635," Booth explains. "It's in a good location, the bones are good, and there's a lot of mature landscaping. The problems are fixable with capital management and a good work effort." Though Booth declined to discuss the sales price, he did note that the multifamily property was acquired from the San Francisco-based seller for less than a third of the replacement cost. The Dallas Central Appraisal District values the asset at $6.7 million.

Booth says Westmount wants to add similar assets to its portfolio – close to a year ago, the company teamed with Knightvest Capital to acquire the 317-unit Silverado Springs in Dallas from lenders. Booth says the company is preparing to close on a multifamily property in Houston next week.

"We're profiling these C-plus, B-minus properties and converting them to Bs," Booth explains. "There is a lot of capital chasing primarily B-plus and A-minus assets to make them into As. We're looking less at those than at the older ones."