Marcus & Millichap Sells 506-Unit Community in Dallas
- Mar 12, 2012
Dallas—On Friday Marcus & Millichap announced the sale of Trinity Palms, a 506-unit asset located in Dallas. While transaction terms were not disclosed, the asset was picked up by a Texas private investor and sold by an El Paso-based partnership.
The property attracted several bids over its two-week marketing period, and closed 45 days after an agreement was reached. Al Silva, associate vice president at Marcus & Millichap’s Fort Worth office, represented the seller in the transaction.
“Trinity Palms allows the new owner to enjoy a double-digit cash-on-cash return despite a 22 percent economic vacancy, which presents a huge value-add component,” Silva says. “By improving operations and bringing them closer to current market levels, the new investor can enjoy impressive returns well into the future.”
The asset is situated on 19.3 acres across from Forest Lane Academy. The new owner plans to make substantial renovations to the property, which consists of 64 wood framed buildings on concrete slab foundations. Amenities include a fitness center, swimming pool, clubhouse and after-care program area.
M West Holdings buys 45-unit asset in Downtown L.A.
Los Angeles—M West Holdings has completed an acquisition of 900 East 1st Street Lofts, a 45-unit property located in the Arts District of Downtown Los Angeles. The 61,961-square-foot building was originally constructed as a distribution warehouse for J.R. Newberry Company, a Los Angeles grocery chain founded in 1898.
M West plans to immediately renovate the extra-large loft units by adding high-end kitchens and bathrooms of condo quality. The property will also be re-branded as The Newberry Lofts.
“We are very excited to acquire one of Los Angeles’ original warehouse buildings,” says Karl Slovin, president of M West Holdings. “We believe that this property has the potential to command some of the highest rents with its submarket and will continue to benefit from the area’s continued population growth, positive employment forecasts, and solid long-term economic drivers.”
Another significant aspect that was considered in this acquisition was the assets’ close proximity to the One Santa Fe Project, a $160 million mixed-use development featuring 438 apartments, 50,000 square feet of public outdoor space, and 78,620 square feet of office and retail space.
NorthMarq arranges 3-year, $10.9M mortgage at 30-year amortization
Los Angeles—Dennis Williams, managing director of NorthMarq’s San Francisco Regional office, arranged first mortgage refinancing of $10.9 million for Clinton Apartments, a 50-unit 60,603 square foot multifamily property located at 5015 Clinton Street in Los Angeles.
Financing was based on a three-year fixed term and a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its relationship with JP Morgan Chase Bank, N.A.
“Based upon a favorable appraisal, the lender volunteered to increase loan proceeds and lower the rate post-application. Our loan officer at Chase, Sharon Groenendyk, did a great job of under-promising and over-delivering on this transaction,” says Williams.