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WICHITA FALLS, TX-An investment group from St. Louis, which has been buying class C properties in Dallas/Fort Worth, is ramping up a $1-million overhaul of its latest multifamily acquisition in North Texas. The repositioning of the 132-unit Elms begins with a name change to La Donna Place Apartments.

The “institutional-type buyer” was the highest of 15 offers left on the table after a couple contracts fell out on the road to a closing for the 69%-leased complex at 2612 Southwest Parkway, Peter Hartnett with Phoenix-based Hendricks & Partners’ Dallas office tells GlobeSt.com. “Economically, it was negative cash flow property in poor condition,” he says. “They have committed to pouring the money into it and they’re going to do it right.”

Hartnett says La Donna’s proximity to a country club and regional mall makes it “a chunk of coal in a diamond mine.” The deal closed for the $2-million ask in an all-cash trade financed through a Missouri bank that rolled in construction financing, according to Hartnett.

The 25-year-old complex consists of four buildings positioned on four acres. It is a mix of 120 one-bedroom units of 660 sf and a dozen two-bedroom apartments with 900 sf. Rents are $350 and $500 per month.

Hartnett says the investment group, a long-term holder, has a half dozen properties in Dallas/Fort Worth–all class Cs that needed repositioning. It’s the group’s first purchase in Wichita Falls but, he says, “they’re going to do well there.”

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