Behringer Harvard Buys 2013-Built Dallas Apartments

Behringer Harvard buys 435 units in Dallas; Charles Dunn Co. completes a $43.3 million sale; and BMC Capital arranges a five-year, floating-rate loan.

Lakewood Flats 5366Dallas—Behringer Harvard has picked up a 435-unit community in its hometown. Lakewood Flats was acquired by the firm’s Behringer Harvard Opportunity REIT II Inc. The 2013-built asset is located at 7425 La Vista Drive in the Dallas’ Lakewood submarket.

“Lakewood Flats provided us with an attractive opportunity to acquire a recently constructed, stabilized and cash-flowing asset in a desirable infill market with strong fundamentals and high barriers to entry,” says Michael O’Hanlon, CEO of Behringer’s opportunity platform. “This is the best-in-class asset in a submarket with high apartment occupancy and limited new supply. We expect Lakewood Flats to continue to benefit from strong demand for a central living option priced lower than many multifamily communities in the nearby Knox/Henderson and Uptown Dallas submarkets.”

Amenities at the property include a clubhouse with gourmet kitchen, game room, fitness center, business center and two resort-style pools. Residents also enjoy direct access to the Santa Fe Trail, a 4.2-mile paved trail system for hiking and biking that connects multiple parks in lower East Dallas.

RC Acquisitions grabs L.A. tower in Charles Dunn-brokered sale

NCT ExteriorLos Angeles—Charles Dunn Co. has arranged the $43.3 million sale of National City Tower, a history adaptive reuse development in downtown Los Angles. The asset features 93 residential lofts, as well as ground floor and basement retail space. The 1924-built tower was redeveloped in 2008, and was the former branch of National City Bank.

Janet Neman and Bryan Glenn of Charles Dunn Company represented the seller, Los Angeles-based National City Towers LLC, as well as the buyer, RC Acquisitions LLC from Canada.

“Downtown is evolving into a 24/7 city which I believe will become the next Manhattan,” says Neman, senior managing director with Charles Dunn. “National City Tower is a core asset in Downtown LA that will reap the rewards of ownership as the area continues to revitalize. I remember selling the Higgins Building at Second and Main in the late 1990s. It was vacant for decades and was sold at just $10 per square foot, and has since been converted to residential lofts.”

Neman and Glenn secured multiple offers on the property and selected the qualified Canadian buyer who owns other high-end residential properties in Southern California and has been looking to enter the Downtown market.

BMC Capital arranges five-year, floating-rate loan

Dallas—Keith Van Arsdale of BMC Capital’s Dallas office has arranged for a $2 million purchase loan for a multifamily property located in Huntsville, Ala.

The loan featured a 75 percent LTV/LTC, a five-year term, a floating rate at 5.25 percent and two years interest only.

At the time of closing, the property was less than 60 percent occupied, and the buyer planned a capital improvement and leasing program to turnaround the asset. The loan was arranged through one of BMC Capital’s correspondent banking relationships.