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FORT WORTH-An investment trio has laid out more than $1 million for a 62-unit Fort Worth complex, where the immediate plan is to add value. Upward of $50,000 annually will be realized by individually subetering the units and erasing its “all bills paid” label, says the broker on the deal.

Seller Vicki Mitchell of Amarillo, looking to do a 1031 Exchange in the Texas Panhandle, has reaped more than 90% of the asking price for the Ambassador Apartments at 511 S. Tierney, Chris Deuillet of Marcus & Millichap’s Dallas office, tells GlobeSt.com. The 40-year-old project was on the market for three months before it fell under contract to AYE LP, a group of three multifamily investors from Los Angeles. It’s the group’s first acquisition in Dallas-Fort Worth, but it’s not going to be the last, says Deuillet.

The sweet spot is the complex’s location: nestled on the East Side, where revitalization is opening doors for repositioning moves. The class C purchase consists of seven buildings situated on 1.8 acres. The East Lancaster rent is one of the hardiest in the city, with increases ranging from 4.5% to 5%, says Deuillet.

Sub-meters will cost about $500 per unit, but in the end “he’s going to see a strong cash return pretty quickly,” according to Deuillet’s calculations. The complex brings in an average rent of 69 cents per sf.

Deuillet was the sole broker on the sale. Mitchell, who bought the Ambassador in 2000, had significantly rehabbed the property before going to market.

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