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BELLMEAD, TX-A $2.6-million loan helped a California investor to buy a 92%-occupied multifamily complex to take the portfolio to three properties in and around Waco, TX.

The buyer of record is Texas E Crest Ltd. of Santa Ana, which took the deed to the 149-unit Eagle Crest Apartments at 4120 Corsicana Highway in Bellmead from a Larkspur, CA-based investment group. The seller, under the moniker of FSF Eagle Crest Associates LP, is in the process of turning over its Texas properties. To date, five have been sold as the group keeps eyes peeled for new buys.

George Deuillet III in the Dallas office for Phoenix-based Hendricks & Partners tells GlobeSt.com that the holding caught a fair number of investors’ eyes in the four months it was on the market. The winning offer, all cash, came from an investment group with two multifamily properties in nearby Waco. The proximity enables the owner to use the same management team for all three properties, he says.

Deuillet says rent averages 76 cents per sf or $464 per month. The 17-year-old complex, which has an average unit size of 608 sf, contains 68 two-bedroom, one-bath apartments and the balance is a one-bedroom design. Upside lies in a rent hike, following a “light cosmetic rehab,” for a complex positioned a mile from Interstate 35 and within three miles of the Texas State Technical College. About 30% of the tenants hail from the school, Deuillet says.

The five-acre asset, which came without debt, brought in the upper $30 per sf. PW Funding Inc., a subsidiary of New York City’s Charter Municipal Mortgage Acceptance Co., arranged the financing through Fannie Mae’s DUS program. The 10-year loan, with 30-year amortization, carried a 5.57% interest rate. Richard A. Olrich in PW Funding’s San Francisco office arranged the financing, which represented an 80% LTV.

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