RICHARDSON, TX-JRK Property Holdings beat out 25 offers to buy the 440-unit AMLI at Breckinridge Point from AMLI Residential Properties LP. The new owner, which is headquartered in Los Angeles, will drop the AMLI brand from the multifamily property’s name and will perform value-add enhancements on the asset that will help push rents.
“This is an asset with a nice pedigree. Fairfield (Residential) built it in 1998 and sold it immediately to AMLI,” says Will Balthrope, senior director of Marcus & Millichap Real Estate Investment Service’s multifamily arm Institutional Property Advisors (IPA). Balthrope teamed with IPA associate director Drew Kile to represent the seller in the transaction of the multifamily property at 4250 E. Renner Rd. The sales price was kept under wraps; the Collin Central Appraisal District assessed the class A property at just over $38 million.
Balthrope tells GlobeSt.com he remembers driving to the submarket in 1998 when the two-phase project was nearing completion. At the time, in east Richardson, there was little more than a lot of fields and “I thought that was really at the end of the tracks, near the end of nowhere,” Balthrope acknowledges.
But during the past 14 years, Richardson, located approximately 10 miles northeast of the Dallas CBD, became the site for the Telecom Corridor, complete with approximately 30 million square feet of office space dedicated to the booming telecommunications and information technology fields. In addition, Interstate 190 – the George W. Bush Turnkpike – was completed as was light rail. As a result, “this is a strong submarket,” Balthrope explains. “It has a great job base; huge companies cater to that submarket.”
As a result, Breckinridge Point has performed well; at the time of closing, occupancy was 95%. Balthrope says AMLI parted with the complex for strategic reasons. “They’d held it for more than 10 years, and it was the end of the lifecycle for them,” he notes.
Once on the market, Breckinridge attracted serious interest both nationally and internationally. Balthrope says he and Kile conducted 31 tours, with 26 offers generated. JRK became the victor because of a short feasibility and quick closing. Balthrope says the entire process took just over 40 days, with JRK closing ahead of schedule. JRK is no stranger to Texas – the company’s Multifamily Platform Fund acquired the 304-Unit Broadstone West Eighteenth in Houston last fall.
Though the commercial real estate property was a quality one, complete with good bones and solid performance, Balthrope says he was still somewhat surprised at the number of offers and the level of interest, not to mention the pricing. Still, “it was a clean execution, from start to finish,” he says. “All parties performed admirably.”