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DALLAS-A Colton, CA private investor has satisfied a 1031 exchange in an 11th hour replacement of a fallen-out contract with a 56-unit, ready-to-go condo property in North Dallas. The scenario set up a sale at the full $2.4-million ask for an 85%-leased rental property.

John Barker, senior associate in Dallas for Marcus & Millichap Real Estate Brokerage Co., tells GlobeSt.com that the Village Oaks Condominiums at 9920 Forest Lane closed six days after the contract came out of escrow. “The guy was in an exchange and had to close,” he says, explaining another contract fell out and caused the rush.

Barker says the timing was met with 25% down and a 90-day seller financing on the balance to allow time for the buyer to secure traditional financing. The 1031 exchange player was under the wire to park capital from the sale of a smaller multifamily property in his home state, according to Barker. He and Christopher Deuillet, also with Marcus & Millichap’s Dallas office, had put Village Oaks on the market just three weeks before the first-time Texas buyer waltzed through the door. And 1.5 weeks later, the deal was en route to the closing table, according to Barker.

The new owner’s hired Majestic Realty in Dallas to manage and lease Village Oaks. Barker says the plan, for now, is to run it “as-is.” The 1980s-era complex, situated near the junction of Forest Lane and Audelia Road, is a mix of individually deeded condos ranging from 701 sf to 915 sf. The one-bedroom units bring in $485 to $675 per month, but the pro forma shows there’s room to hike the rent by roughly $20. The deal closed at an 8.8% cap rate with a pro forma promise of 10.27%.

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