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FARMERS BRANCH, TX-A 265-unit multifamily property in North Dallas, once posted for foreclosure, has been picked up by a Denver buyer, who won lender and seller approval with an offer of $500,000 less than the $7-million ask. Now, it’s full steam ahead on a $1-million makeover.

A limited partnership, buying as Ventana at Valwood, bought the 75%-leased Commons of Valwood at 14208 Heritage Circle in Farmers Branch from a Dallas investment group, II Texas Lagniappe, in a workout with lender, GMAC Mortgage Corp. of Horsham, PA, Mike Burch with Hendricks & Partners in Dallas tells GlobeSt.com. He says the asset was posted for foreclosure, but still rallied 15 offers when it was marketed due to a North Dallas location near the freeways and along Josey Lane. “Long term, that location is conducive to being able to take that property to the next level,” he says, adding the rehab should nudge the class C asset into a class B. Hendricks’ Tom Warren helped broker the deal.

The Denver buyer, actively buying in San Antonio, won GMAC’s nod with the rehab as well as its qualifications to make the Dallas close and, of course, the top price on the table. “It was a common meeting of minds,” Burch says, adding the deal still took six months to close because of the workout process. The complex, which was on and off the market over the course of a year, traded with new debt. GMAC was holding a mortgage of nearly $8.5 million, with a maturity date of February 2010.

The Commons of Valwood, built in 1965, is a garden-style complex on nine acres, a mix of 87 one-bedroom units, 110 two-bedroom floor plans and 68 three-bedroom apartments. Units range from 544 sf to 1,168 sf. Monthly rents go from $520 to $820.

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