Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DALLAS-A Los Angeles-based partnership, with an eye for North Texas multifamily assets, has closed its first deal in the region, taking down side-by-side complexes in a repositioning plan to rename, renovate and combine them. The 432 class B units cost $9 million.

Michel Hibbert, a broker with Charles Dunn Co. and a partner in the deal, tells GlobeSt.com that talks were beginning for the 204-unit Waterford Apartments at 3829 Gannon Lane in South Dallas when he visited, saw the shared access road with the 228-unit Renaissance Creek Apartments at 3839 Gannon Lane and placed bids with separate brokers to get the multifamily block. When the deals closed, Waterford brought $4.2 million and Renaissance fetched $4.8 million for limited partnership sellers, some with crossover interests in both properties. Jay Gunn with Hendricks & Partners’ Dallas office represented Waterford’s local seller of record, F-Crest Holdings LP; and Nita Stewart with CB Richard Ellis Inc.’s local office brokered for Renaissance’s seller, FJBB-Gannon Ltd.

Built in 1985 and 1986, the complexes are positioned near the intersection of US Highway 67 and Interstate 20. Hibbert says less than $1 million will be spent on renovations, mostly cosmetic upgrades for the 80%-leased assets. The new name isn’t being released, but Sunridge Management Group of Dallas has been hired to steer the lease-up.

Waterford, a mix of efficiencies and one-bedroom units, rent for $300 to $400 per month. Its units average 500 sf. The Renaissance’s apartments, averaging 700 sf, are one- and two-bedrooms that bring in $400 to $600 per month.

Hibbert has another property under contract in North Texas. “We’re very optimistic about the area as far as coming from California to the Texas market,” he says. “We heard some good reports from other investors who have bought there. Dallas is where we want to be.”

Hibbert says the partnership reinvested 1031 exchange proceeds from a 16-unit complex in Los Angeles to mark its first spot in Texas. The second purchase will be made with funds from another Los Angeles-area exchange, he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.