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DALLAS-In a quartet of class C deals, three private investors from California are eyeing projected double-digit cap rates, or close to it, to underwrite their acquisitions. The 150 units in the value-add rally traded for nearly $4.3 million.

The most expensive in the pack was the Biscayne, a 59-unit complex at 3211 S. Vernon St., which met the $1.4-million ask. The 33-unit Top Flight Apartments at 2700 Grand Ave. in Dallas went for $629,000 or $8,000 less than the list while the 32-unit Park Place at 405 N. Ewing Ave., also in Dallas, fetched $500,000, down $50,000 from the ask. The 26-unit Pioneer Valley Apartments at 3791 Evergreen St. in Irving also met its ask, $875,000. The pro forma cap rates ranges from 9.3% to 16.46%.

“The buyers are all looking for good, value-add, cash-flow deals,” says John Barker, senior associate with Marcus & Millichap Real Estate Investment Brokerage Co. He tells GlobeSt.com that Biscayne and Top Flight were bought by a Madera, CA investment group; Park Place passed to a private investor from San Francisco; and Pioneer Valley went to a private buyer from Santa Cruz, CA.

Biscayne, built in 1963 on nearly 1.9 acres, was 98% leased when the two-decade owner, FLNG I Ltd. of Dallas sold it. The one- and two-bedroom units range from 625 sf to 825 sf, renting for $500 to $585 per month. Imperial Bank in Dallas financed the deal.

Top Flight, built in 1965 on a half-acre tract, was 99% leased when a private investor from Dallas let it go after a 12-year hold. The complex has one-, two- and three-bedroom apartments, ranging from 550 sf to 750 sf. The monthly rents are $500 to $585. Mason Whitehead with BMC Capital LP in Dallas arranged financing.

Park Place, constructed in 1944 on 2.2 acres, sold at 40% occupancy to a buyer with a renovation plan in hand. The seller, OCS Inc. of Dallas, has one more asset to sell and it’s now under contract, according to Barker. The complex runs the gamut from efficiencies to three-bedroom units. The mix of 350-sf to 700-sf apartments rent for $350 to $550 per month.

Pioneer Valley, a 1984 development on 2.7 acres, was 92% occupied when it was sold by Beach Partners Ltd. of Dallas. The one-bedroom apartments, ranging from 614 sf to 754 sf, are tagged at $565 to $615 per month. Steve Sieling, a BMC Capital vice president, arranged financing.

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