MESQUITE, TX-A first-time Texas buyer has carried 1031 Exchange capital from California to acquire 111 class A units after placing the top offer out of five for an $8.4-million suburban listing.

A family partnership from Henderson, CA satisfied the full exchange with the Central Park Apartments at 4804 Via Ventura in Mesquite, Tom Warren, associate partner with Hendricks & Partners’ Dallas office, tells GlobeSt.com. The buyer turned around proceeds from the sale of a multifamily property in Southern California and took out additional financing to close an all-cash acquisition minus a debt assumption, he adds. Mark Sixhour with Holliday Fenoglio Fowler LP in Houston arranged financing that required 60% down to meet the exchange structuring.

Warren and Tom Burns, a senior adviser with Hendricks & Partners, had the listing on the market two weeks, locking in five offers for the 94%-occupied holding. The deal closed out the first merchant build project for a Dallas limited partnership, new to the development game, according to Warren.

Eyed as a long-term hold, the Central Park complex has 55 one-bedroom units, 44 two-bedroom apartments and 12 three-bedroom designs in five floor plans ranging from 725 sf to 1,202 sf. Rents range from $720 to $1,052 per month. Concessions, which is a key point in today’s talks, were down to one month free at the closing, but had been all across the board, Warren says.

The new owner will hold the name for the five-building development on 5.4 acres. “It’s a nice size for a new construction deal,” Warren says. “We get a lot of buyers looking for newer, class A properties under $10 million…and there just aren’t that many in the Dallas/Fort Worth metroplex.” A Hendricks & Partners’ team in Houston–Jim Hearn and Ed Cummins–represented the buyer.

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