Balfour Beatty Makes a Case for Suburban Dallas

Good schools and proximity to DFW airport draws a joint venture to buy; and Capital One closes on a capped adjustable-rate loan.

Townlake at Coppell, via Yardi Matrix

Coppell, Texas—Balfour Beatty Communities has expanded its footprint in the Dallas MSA with the acquisition of Townlake at Coppell, a 398-unit property northwest of Dallas in Coppell, Texas. The venerable developer, manager and investor acquired the asset in a joint venture with JLL Income Property Trust, a non-listed, perpetual life REIT. Why Coppell?

“The property boasts a strong occupancy history, desirable location in the award-winning Coppell Independent School District and proximity to the DFW airport and downtown Dallas—factors that will continue to position Townlake as a strong performer,” said Chris Williams, president of Balfour Beatty Communities.

Townlake at Coppell, via Yardi Matrix

Townlake at Coppell, via Yardi Matrix

The company also has a regional operations office in the Dallas/Forth Worth area, which should make self-management a breeze. Townlake is located about 30 minutes from downtown Dallas by car. Community amenities include two resort-style pools, a 24-hour fitness center, clubhouse, playground and basketball court.

While terms of the sale were not yet disclosed, Yardi Matrix data shows the property last trading in November 2007, when CNC Investments acquired Townlake from CWS Capital Partners for $32.5 million. Rents at the property are averaging $1,033 per unit.

Capital One closes on capped adjustable-rate loan

Bethesda, Md.—Capital One provided a $6.8 million adjustable-rate Freddie Mac loan to refinance Deer Valley Regency, a 96-unit apartment community in Phoenix, Ariz. Kristen Croxton and Greg Reed, senior vice presidents in Capital One Multifamily’s office in Newport Beach, Calif., originated the transaction.

The borrower, Windsor Louie, acquired Deer Valley Regency in 2008. “After discussing his investment goals, we proposed a Freddie Mac third-party capped ARM,” Reed said.  “This allowed us to provide a cash-neutral transaction, while maximizing cash flow from the property.” The seven-year loan is structured with two years of interest-only payments. The start rate was in the mid-2 percent range and is capped in the mid-5 percent.

Built in 2004, Deer Valley Regency is maintained in top physical condition, and is located near major employers like American Express, Honeywell and Discover Card. It offers residents amenities that include covered parking, a pool and hot tub, a clubhouse and a fitness center. The units feature patios or balconies, washer/dryers and walk-in closets.