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DALLAS-A California buyer has taken title to its first multifamily property in Texas, the 120-unit Quail Hollow Apartments. The Demaree/Morrison Family Trust of California has paid $3.45 million, using proceeds from a 1031 Exchange to close the acquisition.

David Stolte of Charles Dunn Co. in Orange County tells GlobeSt.com that the plan is to invest at least $100,000 into a rehab and then realign the rent, which has a monthly average of $475 per unit. Stolte says that’s about $200 per month less than the submarket average. “That’s the reason my buyer was attracted to it,” he says. “He saw the upside potential in it.” The 2 1/2-acre property, developed in 1982, is located at 9666 Scyene Rd. in East Dallas.

The sale of a Central California multifamily complex drove the Dallas sale to satisfy the turn-around requirements. Seller Quail Hollow Development Ltd. of Dallas was represented by Mike A. Wells of Dallas-based Wells Asset Management Inc.

Stolte says the 80%-occupied asset came to market at $3.6 million and was one of 25 that he found on the Internet and took to the trust for consideration. Negotiations took four months before the final paper was signed, according to Stolte.

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