OpenPath Investments Acquires 250-Unit Dallas Community
The new owner intends to invest in improvements at the 2000-built Greens of Hickory Trail. Income restrictions at the 250-unit community will phase out by 2021.
Post Investment Group has sold the 250-unit Greens of Hickory Trail to OpenPath Investments, according to Yardi Matrix data. CBRE Capital Markets arranged an $18.3 million, 10-year, Freddie Mac acquisition loan for the buyer.
Located at 8613 Old Hickory Trail, the affordable asset is close to retail and dining options and adjacent to the Methodist Charlton Medical Center. Additionally, the property is less than 13 miles south of downtown Dallas and provides access to Interstate 20 and Highway 67. The 2000-built asset comprises two- and three-bedroom apartments in 32 two-story buildings spread across a 22.5-acre site. Common-area amenities include a pool, basketball court, playground and business center. At the time of the sale, the community was 97 percent occupied.
Communities completed in the early 2000s are becoming eligible to have their income and rent restrictions removed, which offers owners the possibility to invest in value-add improvements, according to CBRE Senior Vice President Chris Deuillet. Moreover, these assets are traded at a lower price than similar market-rate communities. In the case of Greens of Hickory Trail, the restrictions will phase out in the next two years and the new owner intends to invest in upgrades, as the units have not been renovated since the asset came online.
Deuillet and Associate Chandler Sims from CBRE Capital Markets’ Investment Properties in the Dallas office and Executive Vice President Jeff Kunitz and Associate Mike Canori from the company’s Affordable Housing arm in Seattle worked on behalf of the seller. Recently, Kunitz was also part of the team which arranged the sale of a five-portfolio sale in Central California.