Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DALLAS-With an eye on the upside, a Dallas-Fort Worth homebuilder has acquired a 243-unit multifamily property with 50% occupancy in southeast Dallas. The occupancy and repairs lowered the price significantly from the list to bait a buyer who’s making a return to the sector after a lapse of several years.

Sam Lewis of Phoenix-based Hendricks & Partners’ Dallas office, tells GlobeSt.com that the Casa Verde Apartments at 5880 Peavy Rd. will now undergo “a $1-million-plus rehab.” The complex, part of a portfolio of four offered by W&O Cos. of New York City, went “at a substantial discount off the list price” of slightly more than $4 million, he says.

The portfolio, in an all or one offering, was brought to market several months ago. Lewis says there were lookers, but no serious offers until the owner dropped the price a bit. The homebuilder, whose identity Lewis is guarding, came up with Casa Verde’s winning proposal: cash on the line and a bank loan assumption.

The new owner won’t be concentrating just on restoring the down units to the rent market, but rather undertaking a top-to-bottom renovation for an updated look to a 1973 product. Mechanicals, fenced patios and canopies are part of the plan as are kitchens, baths and roofs on the 25 two-story buildings situated on eight acres near Loop 12 and Interstate 30.

The Casa Verde, sold at about a 13% cap rate, has units that average 806 sf in a mix of efficiencies of 411 sf to four-bedroom apartments of 1,109 sf. Rents average 65 cents per sf or $521 per month for the sub-metered, all bills-paid property.

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?


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.