Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ARLINGTON, TX-An Arizona buyer, with contracts out on two more properties in Dallas-Fort Worth, has spent $3.3 million for a 98%-occupied, 100-unit complex in Arlington.

The Tempe-based investment group secured a loan of more than $2.7 million from Lehman Bros. in New York City to win the deed to Presidents Corner Apartments at 2201 Presidents Corner Dr. in North Arlington. The asset was on the market two years, in escrow six times and at the closing table twice before the deed traded, Peter J. Hartnett, senior investment adviser in Dallas for Phoenix-based Hendricks & Partners, tells GlobeSt.com.

The stickling point came from the seller’s firm stance on the $33,000 per door, according to Hartnett. The seller of record was Texas Bay Presidents Corner LP, a San Francisco-based group that owned the complex for four years, invested in a rehab and was looking to collect on the upside.

The buyer, Hartnett says, got “a coupon deal. He’s buying it on the return.” The units, which average 893 sf, bring in 63 cents per sf in rent or $559 per month. Key to getting the price for the class C-plus property is a location in a residential neighborhood that is one of the nicest and newest on that side of town, says Hartnett.

The return and location earned the loan, but required 80% loan-to-value and 83% loan-to-cost, says Steve Whitehead, vice president of production for Minneapolis-based NorthMarq Capital Inc.’s Dallas office. He says the 10-year loan has a 30-year amortization and came with a 5.82% interest rate. “It was a full-dollar loan,” he points out. Whitehead and Richard Scandaliato, senior vice president and senior director, in the LA office, arranged the financing with Lehman Bros.

There is no immediate upgrade planned, but over time interiors will be redone, according to Whitehead, who’s also bundling financing packages so the Tempe buyer can take over another 579 units in two properties in Dallas. The 24-year-old Arlington asset sits on six acres, abutting a creek, and includes such amenities as washers and dryers in all units. The down-the-road makeovers, Whitehead explains, will be done to maximize value for the buyer, Arizona Presidents Corner LP.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt. APARTMENTS Fall 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.