$1.2M Buys 72-Unit Complex

ARLINGTON, TX-A 93%-occupied multifamily property in Arlington has changed hands in a deal that delivered $16,666 per unit and an 11.3% cap rate.

Jeff Dowdle of Marcus & Millichap’s Dallas office was the only broker involved in the $1.2-million sale of the 72-unit Casa Madrid at 1500 W. Lovers Lane. The property attracted eight offers in the four months it was on the market, he tells GlobeSt.com.

Buyer Baumbarger Financial Partners of Anaheim, CA signed the final papers and immediately jumped into the repositioning plan, kicking off a $300,000 rehab at a property that had four units burn right before the closing. The fire, Dowdle says, caused $150,000 in damages. Built in 1965, the class C complex is situated on about 2.4 acres.

Baumbarger’s plan will bring a rent increase, according to Dowdle. Rent, about $50 per month below the submarket, runs from $495 to $695 per month for apartments ranging from 603 sf to 1,029 sf. But, the game plan is to “change the overall profile of the complex,” Dowdle says.

Seller Fred Osborne of Dallas acquired the holding in 1998. The sale closes out his multifamily holdings while marking a first buy for a returning Texas property owner. The firm exited the market several years ago. Dowdle says Osborne intends to roll the proceeds into retail acquisitions.

Baumbarger is financing the purchase and rehab with a $900,000 loan from North American Savings Bank of Missouri. The financing carried a 75% LTV for the seller of record, Arlington Madrid Properties.