(Read more on the multifamily market.)

DALLAS-A Santa Barbara, CA-based investment group, banking on value-add interest in the Texas market, is hawking 1,037 units in 13 properties from Denton to Galveston after owning them at least one decade. The motivation to sell is a plan to dissolve the long-time partnership.

The Beverly Partners Ltd. portfolio is a series of class B and class C assets from 18- to 264-unit assets in primary and secondary cities along the Interstate 35 corridor. Teasers to the market, with the hard thrust still to come, has one contract already in place, according to the Marcus & Millichap Real Estate Investment Services’ brokerage team of senior investment associate Norman Eastwood, senior associate John Barker and associate Will Jarnagin.

“Judging by market activity and the reaction we’ve seen so far, we expect to have solid offers coming in the next 30 days,” says Jarnagin, the junior man on the team who cornered the assignment through a referral to sell all that Beverly Partners owns in Texas to dissolve the partnership. There is no call for offers for the debt-free package, just a review of the bids as they roll into the team.

The dynamics of the portfolio, with assets averaging 25 years old, is the value-add appeal. Eastwood, who’s marking his 20th year with the firm, says institutional investors, or quasi-institutional investors, will be eyeing the package as much as others with less to spend because of the properties’ yields rather than turning their backs because the complexes, by and large, run on the small side and aren’t class A caliber. “Don’t think of institutions as only buying class A,” he tells GlobeSt.com. “They buy yields. And, this is a good way for them to pick up yield.”

The portfolio’s big picture is occupancies ranging from 80% to 95% and no deferred maintenance, the team says. The assortment of one-, two- and three-bedroom units averages 800 sf. Rents range from $375 to $805 per month.

Like all mixed-bag portfolios, there are some gems to be mined. The stack includes the 36-unit Reef Resort, an apartment building now operating as a hotel at 8502 Seawall Blvd. in Galveston. All units have unobstructed views of the Gulf of Mexico. The package’s other prize is the 44-unit West Amherst Apartments at 5419 Amherst Circle abutting Highland Park in North Dallas. The rest of the portfolio is listed at the bottom of this article.

“It’s really a diverse portfolio. That’s why we don’t think it’s one guy who will take it all,” Eastwood says. “Some probably will remain apartments and some will probably get ‘condo’d’ out.”

None of the assets are carrying a price. “We’ll let the market determine the price,” Barker says. “More than likely, smaller deals will be picked off by smaller investors and larges ones grouped up.” Just for comparison purposes, class B complexes in Dallas/Fort Worth are trading for $40,000 to $70,000 per unit and class C’s are going for $24,000 to $34,000 per door.

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