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CARROLLTON, TX-A local investment group has scooped up a neighboring asset to amass a full city block of 260 rental units in North Dallas. Sources say the 120-unit Branch Hollow Townhomes has traded at the full ask of $7.8 million.

Tonti Properties, up against nine offers, claimed the deed in an all-cash sweep two weeks after placing its contract, Mark Freeman, vice president with Transwestern in Dallas, tells GlobeSt.com. Although he can’t discuss the selling price, he did say the deed to 1110 E. Branch Hollow Dr. went to the highest offer on the table in the best and final after a four-month marketing. Based on the offering, the full ask equates to a 7% cap rate.

“We knew when we took the listing that the adjacent owner would be a logical buyer for it,” says Freeman, who teamed with Transwestern vice president Armand Charbonneau to sell the 90%-leased holding for a private investment group with its general partner in Dallas. The seller of record, Branch Hollow JV, had owned the asset nearly a decade, parting with it because it was “the end of the holding period,” Freeman says.

In buying the 25-building, 6.74-acre Branch Hollow, the new owner not only took down the rest of the block, but got an extra 7.29 acres with 1.5 developable acres and the balance as a designated flood plain. Freeman says the extra land was bought primarily as a buffer for Tonti’s investment and a strategy to marry Branch Hollow Townhomes to its neighbor, the 95%-leased, 160-unit Rosemeade Townhomes at 3830 Old Denton Rd.

Branch Hollow’s units average 1,082 sf in one-, two- and three-bedroom designs. Its rents range from $710 to $935 per month.

The deal puts Tonti in control of three multifamily assets in Carrollton. It also owns the 174-unit Galleria Townhomes at 1737 E. Frankford Rd., situated 2.5 miles south of Branch Hollow and Rosemeade.

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