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DALLAS-A private investor has acquired neighboring apartment complexes from a Texas-based lender to close the book on a double foreclosure about four months ago for 82 units in the Oak Cliff section of Dallas.

Jarrell Community Development, a Dallas-based non-profit organization, spent about $1.3 million for the 46-unit Cedar Gardens at 3810 Bonnie View Rd. and 36-unit Illinois Gardens at 3333 E. Illinois Ave., John Barker of Marcus & Millichap in Dallas tells GlobeSt.com. Both properties, with a combined 50% occupancy, are in line for a rehab. “It’s definitely a value add,” he says, noting the buyer will use 1031 Exchange capital for the upgrades. Right now, one-bedroom apartments bring in $450 per month and two-bedrooms, $585.

Frontier Capital of Dimmit in West Texas was the seller, foreclosing in recent months on the four-year owner, a dentist from Arlington who put about $1 million into upgrades in the past two years. According to Barker, Frontier ousted some “undesirable” tenants in its short ownership to get a better price for the package. The end result was $15,000 to $16,000 per door for complexes positioned about a half block apart. Cedar Gardens, built in 1987, and Illinois Gardens, constructed in 1986, are carrying 2003 proposed assessments of $234,160 and $279,300, respectively, by the Dallas Central Appraisal District.

Barker and Marcus & Millichap’s Chris Deuillet co-brokered the transaction, which had six to eight interested buyers lined up. Jarrell offered the high bid, the best terms and the right real estate experience to take the value-add deal to the closing table, Barker says of a transaction that closed in a start to finish of 60 days.

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