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FORT WORTH-CRV Properties entered the area with its buy of the 140-unit Casa Villa. The Orange County buyer paid north of $4 million to the Dallas area partnership for the class B asset.

Al Silva, senior investment specialist with Marcus & Millichap Real Estate Investment Services’ Fort Worth office tells GlobeSt.com that seller Summit at Woodhaven LLC owned the asset for 10 years. During that time, the seller had invested about $150,000 in the property at 6100 Oakland Hills Dr.

“The seller wants to move on, and move into something less management intensive,” comments Silva, who teamed with Marcus & Millichap’s Fort Worth-based investment specialist Jason Heard in brokering the transaction. “He’s not looking for a direct 1031 exchange from the sale, he just wants to place the money in a safer investment situation.”

Silva says the marketing campaign generated eight offers, primarily because the asset offered a 10.9% cash-on-cash return on actual income. The Southern California buyer got the nod because of an ability to pay cash for the deal, as well as out-of-state experience in multifamily operations.

“This is huge right now,” Silva adds. “Lenders are spooked when they see a California buyer coming into the Texas market.” In this case, Silva goes on to say, the buyer understood the asset and is working with Centra Asset Partners Inc.’s local office on property management and leasing.

And it’s leasing that is the asset’s upside. Silva says Casa Villa is at 90% occupancy, with room to grow. “There was quite a bit of loss-to-lease, in which the former owner gave a few freebies,” he adds. “By coming in and reducing the loss-to-lease closer to what the market is, the new buyer will realize significant upside.”

Casa Villa, built in 1984, consists of eleven, two-story brick buildings. The class B asset has studio apartments and one- and two-bedroom units, measuring between 601 and 1,140 square feet. Current monthly rents are from $390 to $655.

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