X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

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

ARLINGTON, TX-In unrelated transactions, two complexes on opposite sides of the city have been bought by California investors. The 498 units have brought close to a combined $18 million for the sellers.

The just-sold properties are the 250-unit Southern Hills Apartment Homes at 2624 Southern Hills Blvd. and 248-unit Runningbrook Apartment Homes at 1519 Running Brook Dr. The 94%-leased Southern Hills was on the market for $11.5 million and the 88%-leased Runningbrook was up for grabs for $7.41 million. In both cases, the buyers paid “within striking distance of the asking price,” says Tom Burns, associate partner with Hendricks & Partners in Dallas. And both California buyers, he says, are planning holds with three- to five-year horizons.

The class B Southern Hills picked up a dozen offers during a four-month run on the market, with the highest coming from American Redevelopment Group LLC of the Los Angeles area, which assumed an $8.56-million Freddie Mac loan to win the deal, Burns tells GlobeSt.com. The floating-rate financing bears a 5.65% lifetime cap on the interest, maturing in July 2011. The seller was Domain Communities LLC of Phoenix.

Burns says Southern Hills’ new owner will put $300,000 into upgrades of the 27-building complex, built in 1984 on 20.2 acres near US Highway 360 in North Arlington. The mix of one-, two- and three-bedroom units rents for $549 to $1,075 per month. The apartments range from 718 sf to 1,488 sf. The sale traded at a 6.1% cap rate, according to Burns, who teamed with Hendricks’ adviser Jay Gunn on the asset sale.

The class C Runningbrook was bought by Calypso Communities from Arcap Special Servicing Inc. in Irving, TX, which had nine offers to weigh after a three-month marketing. “Runningbrook has to be repositioned more so than Southern Hills,” Burns explains. “This was a group that we felt could get the deal done.”

The new owner is taking on repairs of a burned two-story structure in the 21-building Runningbrook, built in 1983 on 10.2 acres about five miles south of Southern Hills. Runningbrook’s apartments, ranging from 414 sf to 1,150 sf, are renting for $350 to $522 per month or on average, $40 per month below the market, says Burns, who teamed with Hendricks’ executive Tom Warren on the deal.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.