Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the multifamily market.)

GRAND PRAIRIE, TX-The 36-year owner of the 86-unit Fox Hollow Apartments has handed it over to a buyer from Los Angeles, breaking a per-unit submarket record for its vintage category with the deal’s closing. The fully leased asset has traded for $33,700 per unit and an 8.03% going-in cap rate.

Fox Hollow Apartments, situated on 4.9 acres at 1008 S. Belt Line Rd., bested the local per unit record by roughly $2,000, says Jay Gunn, senior investment adviser with Hendricks & Partners in Dallas. The seller is Skyline Properties of Dallas, which developed the complex in 1971.

Tom Burns, an associate partner in the brokerage firm, says the listing was on the market three weeks when he called James Cohn in L.A., who leads the investment group of buyers, Fox Hollow LLC. His initial offer beat the $2.9-million ask, but a subsequent inspection brought it down to the full list, Burns tells GlobeSt.com.

The brokers say the investment group plans to undertake a renovation, upgrading interiors and the clubhouse in the 12-building complex. Fox Hollow’s mix is two- and three-bedroom apartments with 856 sf and 1,035 sf, respectively. The two-bedroom units rent for $735 per month; the three-bedrooms are $835 per month. Devonshire Real Estate & Asset Management Group of Dallas has been hired to oversee the asset, positioned one mile south of Interstate 30.

“It’s really a yield play,” Gunn explains. “The going-in cap rate is above 8%. It’s not a value-add play.” But, post-renovation could bring a slight rent hike since its immediate neighbors are getting slightly more than Fox Hollow’s rate, he adds.

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

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


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 © 2021 ALM Media Properties, LLC. All Rights Reserved.