Thank you for sharing!

Your article was successfully shared with the contacts you provided.

FORT WORTH-A Pennsylvania investor, pushing past nine other offers, has claimed the 220-unit Crescent Oaks Apartment Homes for close to the $4.35-million ask. The 55%-leased asset in West Fort Worth is part of a nationwide foreclosure of MBS Cos. of Metairie, LA.

TJ Shan of Harleysville, PA, backed by equity from a Highland Park, TX family, scored the win of the 3001 W. Normandale St. property with an all-cash offer. “Given the market, we elected to go with the second highest bidder because of his history, reputation and ability to perform,” Peter Hartnett, associate partner in Dallas for Phoenix-based Hendricks & Partners, tells GlobeSt.com. “The key right now is trying to find people who can carry their own paper.”

The sweet spot to the acquisition is the buyer got the deed for 60% of the loan balance, according to Hartnett, who was selling the deal for Miami-based LNR Properties Inc. “It’s hard to lose on that,” he adds. MBS filed for bankruptcy in late 2007. About two weeks ago, two more complexes were sold in Houston after being pulled from receivership, but Hartnett says Crescent Oaks possibly is the first actual foreclosure in the stack to sell in Texas.

Hartnett says the Crescent Oaks’ new owner expects to invest up to $500,000 to get the 23-building complex, built in 1978 on 11.25 acres, in tip-top shape. “There was very little deferred maintenance,” the broker adds, saying the capital infusion is directed toward bumping the class C plus to a class B with the redo. He says LNR had spent at least $250,000 on repairs on its make-ready plan for the sale.

The immediate upside lies in “getting occupancy where it should be,” Hartnett says. When occupancy gets close to 85%, profits will start adding up, he predicts. The Western Hills submarket’s average is 87.3% for assets of the same era, according to Carrollton, TX-based M/PF YieldStar’s market research.

The mix of one-, two- and three-bedroom apartments range from 535 sf to 1,280 sf. Rents are $379 to $490 per month. Encore Management Co. of Arlington has been put on the ground as overseer.

Hartnett is up to five foreclosure sales this year, with three more listings in hand for a market strapped by fewer closings. “I welcome this type of market. I am not going to make as much money, but it’s a great filtering market,” he says. “It’s a cleansing process not only for brokers, but investors. It gets back to the core players.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.