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[IMGCAP(1)]FORT WORTH-A 13-year owner with a high-interest loan has sold the 260-unit Lakeview Apartments in northwest Fort Worth to a Dallas investor in an off-market transaction. The buyer took the deal across the finish line with a $5.52-million loan at a 6.25% fixed-rate interest in a 45-day spin despite the turmoil in the capital markets.

La Jolla Bank provided the 80% loan-to-value financing for the 94%-leased complex, developed in 1995 on 16.24 acres at 6501 Shady Oaks Manor Dr. Sean P. Bushe, regional loan officer for the La Jolla, CA-based bank, tells GlobeSt.com that Quail Ridge Associates Ltd. from Maitland, FL had acquired the complex with a life company loan that had an 8% fixed-rate interest, but the underlying motive for the sale was the expiration of tax credits. “The real incentive in the deal was to get those tax credits. When they burned off, they wanted to sell,” he says, “and the loan was really encumbering the cash flow.”

[IMGCAP(2)]Bushe credits the quick-moving deal on the 30-year loan to the borrower being a repeat customer of La Jolla and the asset’s quality. “We’re still doing loans, but we’re more conservative now. We’re picky about what we lend on and what we roll into,” he says. “We’re being very selective and very cautious right now.”

The buyer of record is Lakeview on Shady Oaks LLC. Jeff Naquin with William C. Jennings Co. in Fort Worth brokered the sale. Tarrant County has an $11.3-million assessment levied against the property.

Bushe says rents are already market rate, tying upside to the new owner’s ability to improve cash flow with the new loan terms. Lakeview Apartments, close to Eagle Mountain Lake, is a mix of one-, two- and three-bedroom units with garages. The units range from 500 sf to 1,214 sf while rents start at $490 and go up to $775 per month. “It’s costing $5,000 per unit to run and it should be $4,000,” he emphasizes.

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