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[IMGCAP(1)]ABILENE, TX-After a deal craters with one buyer, Bostonian Investment Group moves in for the close, taking 527 units from a 1,447-unit portfolio in West Texas. Multifamily market sources say Bridge Partners most likely collected $22.8 million to $25.7 million for the three-asset, class B package.

Just sold were the 228-unit Windsor Place Apartments at 3501 Curry Lane, 200-unit Hunter’s Ridge Apartments at 5450 Texas Ave. and 124-unit Cedar Creek Apartments at 1948 Denton St. The Walnut Creek, CA-based seller pulled a fourth property, the 256-unit Indian Run Apartments at 3500 Cedar Run Rd., also in Abilene, from the sales block.

Jordan Cortez, director of secondary markets for Apartment Realty Advisors in Dallas, says the Abilene assets had been under contract, but fell out of escrow shortly before two complexes with 639 units in Lubbock, TX were sold from the portfolio to Haley Associates LP of Omaha. “Once we closed on the two Lubbock deals, we brought back the Abilene properties to a handful of buyers,” Cortez says. “Bostonian stepped to the table with their reputation to close, which helped them secure the deal. We’ve sold 14 or 15 deals to these guys and I know them personally.”

[IMGCAP(2)]The complexes are close to 30 years old, with one-, two- and three bedroom units from 609 sf to 923 sf. Rents range from $370 to $720 per month.

Cortez says the new owners will perform minor upgrades although upside isn’t reliant on the improvements. “Given the strength of this market, there is a significant upside either way,” he explains. “An owner could go in and take the interiors to the next level and raise rents or someone could manage the deals as they are and still get good returns.” He teamed with ARA Dallas’ managing partner Brian O’Boyle and colleague Michael Girard to sell the package. Jason Rice with Quantum First Capital in Dallas, arranged for the seven-year, interest-only Fannie Mae loan from Green Park Financial in Bethesda, MD.

Bostonian Investment already owns the 225-unit Tiffany Square Apartments at 6209 W. Interstate 40 in Amarillo, TX, but Cortez says it wants to increase its holdings in West Texas and statewide. In 30 days, the buyer is slated to close on a complex in East Texas.

In early 2007, Bostonian Investment, formerly the Lindahl Group, began buying class B and class C apartments in Texas, looking to amass 6,000 units in the state. Its holdings include Houston and Dallas/Fort Worth.

“In the past, they’ve looked at both value-add opportunities and deals with strong in-place cash flow,” Cortez explains. “The good thing about the three Abilene deals is that there is a good cash flow because of the good economic fundamentals in place. The approximate occupancy is 96%.”

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