X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DALLAS-A Rockville, MD multifamily owner has hawked its last asset in Texas to a local buyer who picked up the reins to 164 units after overcoming a four-month loan assumption process and the rebuilding of 12 units damaged by fire.

The Southwinds Apartments at 1301 W. Wheatland Rd. in Dallas was sold at “a significant discount” from the $2.7-million asking price, Jay Gunn with Phoenix-based Hendricks & Partners’ Dallas office tells GlobeSt.com. The 10-year owner, Southwinds Associates, an affiliate of Southwinds Enterprises of Maryland, had just gotten a contract after a 30-day marketing when fire damaged two buildings in the 8.2-acre, class C complex in Oak Cliff. Gunn says the rebuilding was completed by sale time, but occupancy had dipped to 70%.

The new owner, planning additional upgrades, assumed a loan of nearly $2.1 million with three years left on the term, according to Gunn. Prudential Financial Inc. of Newark is the lender.

“I think it will reposition well,” Gunn says. “He will focus on the occupancy and maybe start to bump rents in nine months.” He estimates the new owner has a 10% to 15% spread before reaching market rate. Right now, they range from $399 to $599 per month or 54 cents per sf. The complex consists of 24 one-bedroom units with 650 sf; 100 two-bedroom apartments with 850 sf and 43 three-bedroom designs of 1,050 sf.

The local buyer owns four other class C properties, totaling 500 units, in the metroplex. And like the others, the plan is to self-manage the 22-year-old asset.

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?

GlobeSt

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.