41-Unit Sale Opens Redevelopment Door

DALLAS-A private investment group from Austin has met the full $2.3-million ask to best two other offers for the 41-unit Manhattan I, eyeing the dirt more so than the bricks and mortar. The plan most likely is scrape and rebuild as is so common in the high-profile stretch where Highland Park meets University Park and land prices are premium.

Joe Garrett with Sperry Van Ness in Dallas tells GlobeSt.com that the two-building asset on a 0.9-acre tract at 4406 Bowser Ave. sold at a 7.13% cap rate. Manhattan I was 95% leased at sale time in its mix of studios and one- and two-bedroom apartments that range from 701 sf to 1,036 sf. In-place rents begin at $674 and crest at $828 per month.

The buyer couldn’t be reached by press time to comment on his redevelopment timetable, but Garrett has confirmed Manhattan I appears destined for a date with the wrecking ball. The deal’s math works out to $56,098 per unit for 1966 product in a class A location, a development site right at the Highland-University line and within walking distance of Whole Foods and blocks of high-end retail.

Garrett says the trio of offers hit his desk “immediately” after marketing began for the asset, which was sold by Bowser Investments LP of Dallas. The seller, also a developer, had acquired the holding in October 2006, most likely with the same intention.