(To read more on the multifamily market, click here.)

McKINNEY, TX-A Salt Lake City-based investment group, up against nearly a dozen offers, has closed on a 248-unit, class A complex tailored to a niche renters’ market. Sources say the 92%-leased asset has commanded close to the $17.75-million ask.

The Villas of El Dorado, positioned on nearly 13.7 acres at 3250 Hudson Crossing, was sold by a North Texas partnership, which includes Samuel Ng, the Dallas architect who also designed the Mayfair, a luxury Turtle Creek rental at 3401 Lee Parkway. Ng’s Villas of El Dorado design, though a class A, stands out in its market because it is “value-priced to renters,” Don Ostroff, senior director for Cushman & Wakefield of Texas Inc. in Dallas, tells GlobeSt.com. “And that’s a good place to be.”

The Salt Lake City buyer was in a dead heat with one other investor for the deal, but won the seller’s nod on several fronts. “They’re knowledgeable about the market and a good closer,” Ostroff says. “They own locally.”

Ostroff says the Villas listing only caught the attention of private capital buyers because “it’s too far out and too small” to have piqued interest of institutional investors. Nonetheless, its location is primed for upside since its competitors are luxury condos and rentals. “It presented itself as a very attractive value-priced asset in the midst of a submarket whose general genre is expensive,” he says. “It was designed to fit in under the luxury class A product.”

Ostroff says the new owner, most often a five- to10-year holder, has upside in the rising market and added upgrades inside and out to the four-year-old merchant build. In fact as it turned out, the market picked up the highest percentage rent gains and occupancy in the metroplex as the deal made its way to the closing table. “The timing turned out to be very opportunistic for the buyer,” says Ostroff, who teamed with C&W’s Lamont Rattler and Jason Boyce to market the property.

The Villas consists of 12 two- and three-story residential buildings and a clubhouse. The layout is weighted with one-bedroom units in 621-sf and 754-sf floor plans. The mix also includes 60 two-bedroom apartments and eight three-bedroom units, ranging from 949 sf to 1,185 sf. Rents start at $650 per month and go to $1,275.

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