New Owner Steps Up for 76-Unit Subsidized Complex

FORT WORTH-AmeriSouth Realty Group of Dallas has taken control of a 76-unit federally subsidized complex in South Fort Worth in an off-market transaction with a receiver in Beaumont, TX. The new owner, spending nearly $1 million for the deed, will invest another $10,000 per unit into the value-add plan.

The acquisition process for fully leased, fully subsidized Prince Hall Apartments II at 4820 E. Berry St. was “extremely difficult,” Jeff Ratliff, AmeriSouth’s executive vice president, tells GlobeSt.com. “It was a problem for HUD for years.” According to Tarrant County Appraisal District, the asset is assessed at slightly more than $1.3 million.

Meridian Construction Co. of Dallas is readying the crew to start work on the interiors and exteriors, including the immediate addition of air conditioning to the 36-year-old development set on four acres. Ratliff estimates the top-to-bottom renovation will take nine months to complete.

The complex has 11 one-bedroom units with 607 sf; 29 two-bedroom apartments with 777 sf; and 36 three-bedroom floor plans of 904 sf. Rents are $395, $430 and $525 per month. Prince Hall’s rents were dropped, but the post-renovation agenda includes a pitch to HUD for an increase, according to Ratliff. “It will be a strong C plus in about six months,” he vows.

“We are only looking at HUD deals and not market ones because the market’s so soft,” Ratliff says. “There’s a significant value add once rents are brought up to market…and HAP (Housing Assistance Program) contracts guarantee 100% collection with a 100% occupancy with a waiting list.”

AmeriSouth, led by president Ruel Hamilton, secured acquisition and renovation financing, representing 85% loan to value, through Colonial Bank in Dallas. John Brownlee with Holliday Fenoglio Fowler LP’s Dallas office arranged the financing.