DALLAS-In back-to-back, class C sales, 342 units in three complexes have fetched nearly close to their asking prices as in-state and out-of-state investors continue to zero in on the region’s value-add plays. In all, more than $12 million was exchanged for the deeds.

The largest trade was the 188-unit Grove Park Apartments at 1705 Jupiter Rd. in Plano, a fully occupied complex that delivered 99% of the $8.45-million ask, John Barker, senior associate in Dallas for Marcus & Millichap Real Estate Investment Brokerage Co., tells GlobeSt.com. The 70-unit, fully leased Timberbrook Apartments at 2468 Laughlin Dr. in Dallas reeled in 98% of its $2.3-million list and the 84-unit Parkside Place at 2833 Community Dr., an 85%-filled complex, corralled 95% of its $2.1-million marketing price.

Barker says concessions are burning off across the board. “In the next year, the buyers are going to start seeing some great cash flow,” he predicts.

Grove Park, which carried a 6.77% cap rate based on the list, consists of one- and two-bedroom apartments, ranging from 683 sf to 935 sf. Its rents go from $595 to $795 per month. Barker says the private investor from Pasadena, CA is getting a deal with upside in a rent hike to level its playing field with the submarket. The seller is a private investor from Woodland Hills, CA who renovated the 32-year-old complex, positioned on 8.8 acres, three years ago.

Timberbrook Apartments, with a 9.28% cap rate based on the ask, is a two-bedroom mix with floor plans from 845 sf to 1,040 sf. The buyer from Murphy, TX is starting out with rents of $500 and $600 per month and an address just east of the Dallas CBD. The eight two-story buildings rose in 1968 on a 3.1-acre tract, undergoing a renovation last year by the local seller.

Parkside picked up more than 20 offers in a four-month marketing run due to its location in the Bachman Lake submarket, a hotbed of vintage property sales in line with widespread redevelopment by new and long-time owners. The Parkside, marketed with a 9.08% cap rate, sits beside a new shopping center.

Barker says Parkside’s marketing was tied to the seller, a private investor from New York City, not being willing to stray too far from the ask. “With that area turning the way it is, he wasn’t going to move off the price,” Barker says. The deal terms from 3 Chinos LLC of Los Angeles was the closer, the broker adds. Grove Apartments and Timberbrook did three- and four-week runs on the market, with four and six offers coming in respectively.

Parkside, built in 1968 on 2.5 acres, also has one- and two-bedroom apartments. The 600-sf to 995-sf units bring in $400 to $595 in monthly rents. Barker says a renovation is on the drawing board.

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