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ARLINGTON, TX-A value-add multifamily property with “location, location, location” has brought nearly $2.3 million in a face-off by a half dozen competitors. The 90%-occupied Matlock Place Apartments is now in the hands of a Woodland Hills, CA investor who assumed a loan and used 1031 Exchange funds for the homerun play.

The California investor, selling a smaller property in his homeport, took over 100 class C units at 200 W. Pioneer Parkway in Arlington, getting a 31-year-old complex at a primary crossroads: Pioneer Parkway and Matlock Road. The seller is another private investor, hailing from Coronado, CA that capped a two-year repositioning with the sale.

“It’s a nice clean deal. It’s got good cash flow now and the potential for a lot more cash flow,” John Barker with Marcus & Millichap in Dallas tells GlobeSt.com. He adds that the deal closed with the buyer assuming the eight-year balance on a $1.8-million loan serviced by the Horsham, PA-based GMAC Mortgage Corp.

The new owner not only got location, but an under-market rent with a $75 per month window for growth, according to Barker. Matlock Place Apartments’ rents range from $400 per month for a 640-sf one-bedroom unit to $765 for a 1,500-sf four-bedroom apartment, with tenants paying water and electric. The mix has 19 one-bedrooms; 62 two-bedroom units with 750 sf; 18 three-bedroom apartments at 1,100 sf; and one four-bedroom floor plan. The two-bedroom units rent for $750 per month and three-bedrooms are getting $1,100. Majestic Realty Services of Dallas has been hired to replace the seller’s on-site manager.

Barker says the new owner will improve landscaping, make added upgrades and gradually push rents closer to the market. The deal closed with Barker bringing the buyer to the table and Marcus & Millichap’s Jeff Dowdle, also in Dallas, representing the seller, who got within $300,000 of his asking price after a four-month run on the market that generated a half dozen offers.

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