Large Texas Apartment Community Trade Hands
- Aug 09, 2013
Grand Prairie, Texas—Marcus & Millichap Real Estate Investment Services has arranged for the sale of Windridge, a 720-unit property located just west of Dallas in Grand Prairie, Texas. Milwaukee-based MLG Capital is the new owner of the 1987-built community, which was sold by an out-of-state property owner. William Jarmagin and Michael Ware, both senior associates at Marcus & Millichap’s Dallas office, represented both parties in the transaction.
“Dallas/Fort Worth has been a hotbed of economic activity this year, creating favorable conditions in the apartment market for both buyers and sellers,” says Ware. “Despite some recent volatility, interest rates remain attractive and apartment vacancy in the Metroplex is near a five-year low.”
Community amenities at the property include three swimming pools, two spas, six laundry centers, controlled access, a business center, Internet café, tennis courts, a basketball court, a police sub-station and lighted mailboxes.
Centerline Capital refinances a Mississippi community
Columbus, Miss.—Centerline Capital Group has provided a $1.1 million facility to refinance Hargrove Estates Apartments, a 41-unit affordable community located in Columbus, Miss. The borrower is Hargrove Estates LP, a Mississippi limited partnership. The project was developed by New Horizons Development LLC, a Mississippi-based real estate developer founded by principals Louis Jurney, George Provias, and David Strange.
“Centerline refinanced Hargrove Estates with a HUD-insured mortgage under the Section 223(f) program. The new loan is non-recourse and has an attractive fixed rate amortizing over a 35-year term,” notes Jim Gillespie, managing director at Centerline Capital Group. “The property was eligible for permanent FHA financing under the extension of the ‘three-year rule’ waiver for 223(f) loans for affordable multifamily housing transactions, and the refinancing allowed the borrower to prepay his construction financing with non-recourse permanent financing at historically low long-term interest rates, resulting in substantial annual debt service savings.”
The property began construction in 2010 and was completed and stabilized in 2011 using conventional debt and 9 percent LIHTC syndicated by Centerline Capital Group. Hargrove Estates is 100 percent affordable and operates subject to Section 42 LIHTC guidelines.
Berkeley Point Capital facilitates $12.5M for acquisition
Dallas—Berkeley Point recently closed the acquisition financing of Maple Gardens, a Class A, 120-unit apartment community located in Dallas. The financing was structured under the Fannie Mae DUS program as a 10-year deal term with two years interest-only at a fixed rate of 4.33 percent and 30-year amortization schedule. Newly constructed in 2011, the property includes three four-story, mid-rise buildings.
The acquisition is a joint venture between Jeff Riggs and Scott Fisher of Baron Properties, and the American National Insurance company (ANICO). The venture is part of Baron Properties’ strategy to foray into the major multifamily markets of Texas, where the firm has an existing industrial portfolio. Baron Properties recently acquired AMLI Towne Square Apartments and The Cheval Apartments in Houston, and currently has extensive multifamily operations in Colorado and Arizona.
Maple Gardens is the 15th multifamily transaction between Baron Properties and Berkeley Point. Ed Belz, managing director, led the Berkeley Point team to structure the financing arrangement with Fannie Mae. Berkeley Point was able to arrange financing which included maximum loan proceeds and a two year interest-only period, while rate locking the deal rapidly, 15 business days following application.
“As always, I so appreciate Ed, he’s a pro, and [so are] the whole Berkeley team,” says Scott Fisher, principal, Baron Properties.
The recently constructed, Class A asset includes high end unit finishes and is in close proximity to downtown, Dallas and within walking distance to the city’s high profile Medical District that includes world-renowned UT Southwestern Medical School and Center. The property is located close to major arteries and offers its residents superb visibility and access. The neighborhood is experiencing substantial redevelopment and expansion with over $1.2 billion being invested in the nearby Parkland Memorial Hospital. The area has also seen major economic growth from the construction of the DART light rail system and the modernization and expansion of nearby Love Field Airport.