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IRVING, TX-With a 1031 exchange deadline hanging overhead, a private investor from Beverly Hills, CA has grabbed the 226-unit Willows Apartments from a one-year owner. The buyer came within 99% of the $6.4-million ask to draw a halt to marketing after just three days.

The short story is the seller, a private investor from Encino, CA, paid $5.9 million in October 2006 for the Willows at 3304 Willow Creek Dr. and sold it for $6.3 million to close out a value-add play at the now 90%-leased complex. “It was the first, the best and the final offer,” John Barker, senior investment associate for Marcus & Millichap Real Estate Investment Services, tells GlobeSt.com.

Barker says the seller was 40% done with a renovation that the buyer intends to complete. The upside projection is post-renovation rents could realize $75 more per month, according to the broker. The Willows’ one-, two- and three-bedroom apartments, ranging from 541 sf to 1,082 sf, presently bring in $550 to $875 monthly apiece in an all bills-paid scenario.

The seller also got out from under a $4.7-million loan with the pass. Barker says the first-time Texas buyer picked up the financing at a 6.6% fixed-rate interest and funded the balance with gain from a multifamily property sale in Beverly Hills. The marketing flyer puts the cap rate at 6.84%; the pro forma cap at 9.43%.

Barker says the new owner is planning a long-term hold of the 20-building Willows, built in 1968 on 7.85 acres. Key to the plan is its location: two miles from Dallas/Fort Worth International Airport, on the doorstep of public transportation and beside Irving Mall.

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