Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.