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GRAND PRAIRIE, TX-Manor Redevelopment LLC of Addison, TX purchased Royal Oaks Manor apartments at 602 W. Pioneer Pkwy. in Grand Prairie for $5 million. The seller was a partnership of Realty Management Inc. and Miami-based LNR Partners Inc.

The 276-unit class C property was built in 1972. It features 30 one-bedroom units, 184 two-bedroom units and 62 three-bedroom units. The buyer plans to spend $500,000 to upgrade the 255,355-sf property in order to boost rents and raise occupancy. Units average 925 sf. Current rents range from $595 to $825 a month. Manor Redevelopment says rents after upgrades will run from $625 to $866 a month.

The cap rate on the sale was 1.89% based on existing rental income of $1.36 million a year and net operating income of $118,753 a year. The buyer projects it can increase rental income to $2.21 million a year and NOI to $858,868 per year through better management.

Peter Hartnett of the Dallas office of Hendricks & Partners arranged the sale.

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