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HURST, TX-A private investor from North Texas, up against a half dozen other would-be buyers, has met the $3.6-million ask for a 154-unit multifamily property, calling a halt to a four-day run on the market. At closing time, the class C-plus complex was 95% leased–with concessions.

“It’s a pride of ownership deal,” says John Barker, senior associate and associate director in Dallas for Marcus & Millichap Real Estate Investment Brokerage Co. Rent hikes and concession burn-offs set up the upside for the new owner of Sutton Square, a 9.7-acre holding at 601 Bellaire Dr. in the Tarrant County suburb of Hurst, Barker tells GlobeSt.com. He estimates concessions will be erased in a year’s time.

Barker says the Irving investor bought the 26-year-old Sutton Square from its five-year owner, Dial Equities Inc. of Omaha, putting $1 million down and financing the balance through Chicago-based LaSalle Bank in a five-year loan with a 6.27% fixed-rate interest. “He had the highest bid and the best terms,” he says.

“This deal exceeded my expectations,” Barker adds. “People saw the potential. It was priced right and it’s a good location.”

Sutton Square, which neighbors a school, garners rents of $450 to $785 per month for one-, two- and three-bedroom units ranging from 633 sf to 1,051 sf. The pro forma cap rate is 8.09% in a projected monthly rental range of $465 to $800.

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