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GRAND PRAIRIE, TX-A well-known local repositioning pro of vintage multifamily properties has pocketed a 276-unit value-add, thanks to an exclusion rating by the lender and a bid in the $5-million range. The new owner is starting the play at Royal Oaks Manor with 40% occupancy.

Tim Gillean of Dallas, who buys and immediately renovates, is ready to tear into the 39-building class C complex on 15 acres at 602 W. Pioneer Pkwy., which was in receivership through Realty Management Inc. of Tomball, TX on behalf of Miami Beach, FL-based LNR Properties Inc, according to to Peter Hartnett, associate partner in Dallas for Phoenix-based Hendricks & Partners. He says another national brokerage house had the listing and prospective buyers in the pipeline. “LNR listed Tim as an exclusion to the agreement. They liked the fact that Tim has such a good reputation. And when it came to crunch time, Tim had the strongest offer,” Hartnett tells GlobeSt.com.

Royal Oaks Manor was sold two years ago to a Richmond, CA-based investment group for $7.2 million. “This is very indicative of where the class C market is going,” he says, explaining yesteryear’s higher priced multifamily assets are making their way back to the market at significantly lower asks.

Hartnett says Gillean’s true value-add is tied to occupancy and concession burn-off although Royal Oaks will get a moderate renovation due to new city restrictions. “This is a very well-built and maintained property,” Hartnett says. “When it gets to 85% occupancy, it’s a moneymaker. He got a great deal on it.”

Royal Oaks’ mix is one-, two- and three-bedroom units ranging from 715 sf to 1,127 sf. The monthly rent is $595 to $825, but Hartnett says concessions result in an effective rate of $549 to $760.

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