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DALLAS-Atlanta-based Gables Residential has sold two Texas multifamily rental communities, one in Dallas and one near Houston, to a non-profit 501(c) 3 organization with tax-exempt bond financing. The two apartment communities were sold for $54.3 million.

“We successfully sought out a buyer which allowed us to truly maximize our value for the assets. These prices are at least 15% above conventional valuation level,” says Chris Wheeler, CEO of Gables.

The properties include the Arborstone, a 536-unit apartment complex in Dallas, and Baybrook Village, a 776-unit apartment community in Webster, TX, a suburb of Houston. Jim Hearn, a Houston partner of Phoenix-based Hendricks & Partners, represented Gables Realty LP while Ed Cummins III, senior investment adviser for Hendricks & Partners, acted on the buyer’s behalf.

The Arborstone is located at 6500 South Cockrell Hill Rd. in southwest Dallas. Apartments range from one-bedroom, 590-sf units that lease at $460 per month to two-bedroom, 920-sf apartments that lease for $780 per month. Baybrook Village is located at 2702 West Bay Area Blvd. near the Clear Lake/NASA area. Apartments there range from one-bedroom, 575-sf units to three-bedroom, 1269-sf apartments that lease for $935 per month.

“This is an extraordinarily attractive cost of capital for assets averaging over 18 years in age,” Wheeler says. “The sale upgrades our portfolio materially.”

Gables expects to report a gain on sale during the fourth quarter of approximately $26.5 million, or $0.87 per share. The sale included a five-year management contract for Gables.

Gables Residential has a portfolio that includes 23,907 units in 83 communities. After the sale, the company currently has nine communities in Dallas and 20 in Houston. Gables also has 2,953 units under development or lease-up in Houston, Atlanta, South Florida, Austin, Dallas, Tampa/Orlando and Washington, DC.

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