DEAL OF THE DAY: Transwestern Arranges Sale of Waco’s Largest Apartment Complex
- Jun 10, 2010
Waco, Texas –Transwestern’s Austin Multifamily Group has brokered the sale of the Sanger Oaks Apartments in Waco, Texas.
The Sanger Oaks Apartments, formerly known as The Commons on Sanger Apartments, is a 327-unit apartment complex located at 5000 Sanger Avenue, just a few blocks off Valley Mills Drive, one of Waco’s main thoroughfares. Sanger Oaks sold for an undisclosed price.
Transwestern’s Austin Multifamily Group, headed by Jeff Rogers and Chris Stutzman, represented the seller, Midland Loan Services of Overland Park, Kansas. The Dallas-based buyer, CrestMarc Woodstock Properties LLC, made their first purchase in the Waco market with the acquisition of the property.
The Sanger Oaks Apartments is an excellent fit for the buyer, who has extensive experience with property renovation and repositioning. he seller received the property back pre-foreclosure from the previous borrower in May 2008. While anticipating an eventual sale, the seller kept the property well maintained while making slight improvements, but left the major renovation projects for the ultimate buyer. The new owner has plans for both interior and exterior renovations to the property.
Sanger Oaks is the largest apartment complex in the Waco market. Developed in two phases in 1978 and 1979, the Class “B” project contains 22 two-story buildings situated over 14 acres. Units at the project consist of a mixture of 600 square foot one-bedroom units and 800 square foot two-bedroom units, for a total of 218,600 square feet of living space. The property also contains an onsite management and leasing office, two swimming pools, a fitness facility and two tennis courts.
“Both buyer and seller were pleased to close the transaction in the current difficult debt and equity environment” says Chris Stutzman, managing director of Transwestern’s Austin Multifamily Group. “The buyer, with their vast experience in the multifamily industry along with the talented onsite staff, will be able to quickly reposition Sanger Oaks into a highly respected and sought after residential community.”
Regarding the overall stability of the market, Jeff Rogers adds, “The Waco apartment market has maintained a relatively stable occupancy level during what has become one of the most difficult time periods for the industry. Despite the slight over-building of Class “A” complexes catering to the Baylor University market, the overall Waco apartment market has fared well as have several secondary markets throughout Texas.” According to Transwestern, as of the 1st Quarter of 2010, average occupancy for the Waco apartment market is 94.9 percent with the average rental rate of $586 per unit.