Walker & Dunlop Arranges 6-Property Portfolio Sale
- Apr 23, 2020
The Walker & Dunlop Investment Sales team led by Managing Director Kyle Palmer served as advisors to both the sellers and buyer of a portfolio of six Northern Texas apartment communities with a total of 325 units. The sales price of the Denton, Texas, portfolio and the names of the parties in the transaction—identified only as local private-equity investors—were not disclosed.
Following the sale, Palmer partnered with Jeremy Nussbaum, a senior director in Walker & Dunlop’s Capital Markets group, to source a streamlined bridge financing solution for the buyer through a national debt fund. The loan terms include a rate of 4.1 percent, interest-only for three years, and a loan-to-value of 80 percent. The acquisitions expanded the buyer’s existing Texas portfolio, which includes Oasis Springs in Hurst, Texas, and Madison Park and Wyndham Pointe, both in Fort Worth, Texas.
The Denton properties—Locust 210 Lofts, Victoria Heights, Victoria Station, Victoria Village, The Adagio and Locust Street Terrace Apartments—are all Class A, mid-rise properties built between 2009 and 2014. The portfolio was 94 percent leased at the time of the sale. With a total of 325 residential units, the properties also have more than 18,000 square feet of commercial space.
Walker & Dunlop notes the properties are located in the popular city-center location and are expected to experience organic rent growth through lease-over-lease gains in the high barrier-to-entry growing community that is a Dallas-Fort Worth suburb. The buyer expects to invest $3.2 million in interior and exterior renovations.
In another recent transaction in Denton, Dougherty Mortgage provided the owner of Forest Ridge Apartments, a 56-unit property, with a $4.4 million refinancing package featuring a 12-year Fannie Mae loan with a 30-year amortization period. The Class B, garden-style community was built in 1971 and has eight buildings.