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AMARILLO, TX-Making its first strike in the city and its third in Texas so far this year, a Boston-based investment group has acquired the 225-unit Tiffany Square Apartments in a value-add play. The transaction closed just two weeks after the purchase of the 144-unit La Residencia Apartments and 100-unit Bonaventure, both in Brownsville.

Bostonian Investment Group, formerly the Lindahl Group, paid about $35,000 per door or nearly $7.9 million to BH Equities Inc. of Des Moines for the class B-minus Tiffany Square at 6209 W. Interstate 40. “It’s tired. It’s old. It’s worn down,” says Justin Meszaros, CEO of Bostonian Investment.

Meszaros says about $250,000 is earmarked to paint, repair the wood and complete minor modifications to unit interiors. “This has a good, diversified renters’ base and the rents are $50 to $60 below current market rents,” he tells GlobeSt.com.

The 95%-leased Tiffany Square has one-, two- and three-bedroom apartments, ranging from 740 sf to 1,400 sf. The rents are $505 to $789 per month.

In Brownsville, Bostonian Investment bought two class C complexes: the Bonaventure at 2313 Shidler Dr. and La Residencia at 2454 E. Price Rd. They also paid about $35,000 per unit or $8.5 million for the properties. The seller was Cornerstone Capital Consulting in Dallas.

The Brownsville complexes are situated within two miles of each other. The new owner plans to make minor upgrades to both assets, which are 95% occupied. “They aren’t adjacent to one another, but were operated together,” says Jonathan T. Boone, transaction manager with Apartment Realty Advisors in Austin. He and ARA’s vice president Jeffrey L. Patterson represented the sellers of both transactions.

La Residencia and Bonaventure also have one-, two- and three-bedroom units in floor plans from 704 sf to 1,324 sf. Rents go from $459 to $709 per month.

Meszaros tells GlobeSt.com that Bostonian Investment’s goal for the remainder of the year is to close one deal per month. He says the plan also calls for more class B and class A complexes for the portfolio.

Immediate plans call for more buys in Amarillo and entry into new Texas markets like Victoria, Corpus Christi, Abilene and Lubbock. “Whenever we enter a secondary market, we want to pick up three to four deals in that market,” Meszaros says. “We’re chasing several deals in Amarillo and elsewhere.”

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