Greysteel Arranges Sale of 2-Property Dallas Portfolio
Luau and Koko Apartments have undergone capital improvements since 2017, including new roofs, parking lots, exterior paint and some interior upgrades.
After arranging the sale and financing of New Orleans Apartments in Carrollton, Texas, last October, Greysteel has arranged the sale and acquisition financing for a two-property multifamily portfolio located in Dallas. The communities include Luau and Koko Apartments.
Managing Directors Doug Banerjee and Boyan Radic, as well as Senior Investment Associates Andrew Mueller and Scott Simon, procured the buyer and sold the portfolio on behalf of the seller, which, according to Yardi Matrix, was Henley Properties. The company purchased both communities as a portfolio back in March 2018 from a private seller, for $7.7 million. Senior Investment Associate Daniel Hartnett arranged the bridge acquisition financing.
Located at 2121 and 2203-2211 Empire Central Drive, Luau and Koko Apartments total 138 units. Both communities have undergone a number of capital improvements since 2017, which included new roofs, parking lots, exterior paint and some interior upgrades. Luau also received new windows throughout the property. Koko features 100 apartments in one- and two-bedroom floorplans ranging from 576 to 800 square feet. As of November, the property was 91 percent occupied.
“Luau and Koko traded hands twice in under a 12‐month period with the new owner planning to continue the interior upgrade program at the assets and draft off of the continued growth in the immediate area from Dallas Love Field and the Medical District both providing thousands of jobs very close by,” said Banerjee, in a prepared statement. “The attractive bridge financing arranged by the Greysteel Capital Markets team allowed for a high leverage loan that should provide solid cash-on-cash returns for the new owner as rents are pushed and the property is further stabilized.”
The communities are in close proximity to uptown, downtown, the Dallas Love Field Airport, the Dallas Central Business District, and the Southwestern Medical District, which features the UT Southwestern Medical Center, Parkland Health and Hospital System and Children’s Medical Center Dallas.
Image courtesy of Yardi Matrix