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DALLAS-The 184-unit Hillside Apartments, weathering “two or three” failed contracts and significant storm damage, has changed hands for close to the $3.6-million ask. Through it all, the class C complex was hovering 95% occupancy when it traded.

“What was attractive to him was he bought a property that was stable with a history of staying rented and good cash flow,” Sam Lewis with the Dallas office for the Phoenix-based Hendricks & Partners tells GlobeSt.com. The Hillside Apartments at 2910 Prichard Lane in Southeast Dallas passed after a seven-year hold from the locally based HSA Associates to a local limited partnership, which plans to follow the seller’s lead to self-manage the property.

Lewis says the deal closed with a 10-year conduit loan from the New York City-based Lehman Brothers at a sub-6% fixed-rate interest. The buyer finessed the financing with 25% to 30% down, according to Lewis.

The road to the closing weathered obstacles like fallen out contracts and a summer storm that ripped through one of the complex’s nine buildings, taking down 26 units for repairs, Lewis says. Built in 1972 on 6.3 acres near Buckner Boulevard and Sceyene Road, Hillside is a mix of one-bedroom units, with 760 sf for $525 per month, and two-bedroom apartments, with 928 sf for $650 per month.

Whether it’s short term or long term, Lewis says the new owner “is looking at the cash flow.” The next step, he adds, will be upgrades, costing more than $500,000, into Hillside’s apartment interiors and building exteriors.

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