122-Unit North Hills Crest Apartments Sell at 10-Plus Cap Rate

HALTOM CITY, TX-A Texas partnership, marking its seventh sale this year, has handed off the 122-unit North Hills Crest Apartments for the $2.35-million ask. The buyer, who recently relocated to the region from California, got a 96%-occupied complex with 10.93% cap rate.

“It was a good deal. I haven’t sold anything above a 10-plus cap in years,” Pete Hartnett in the Dallas office for Phoenix-based Hendricks & Partners says about the 3501 N. Hills Crest Dr. property. “You just don’t see that much anymore.”

Hartnett tells GlobeSt.com that the buyer, Tim Swett of Bedford, put 25% down or $590,000 and assumed a loan with Red Capital Mortgage Co. of Columbus, OH, with four years left on the term at a fixed-rate interest of 8.53%. He says another five offers went on the table after Swett, buying as MTM Properties LP, had placed a contract meeting the full asking price of its nine-year owner, North Hills Crest Apt. I LC, with principals in Dallas and San Antonio.

According to Hartnett, several tenants have lived in the 42-year-old complex nearly 30 years. “It’s in excellent condition for a property of that age,” he adds.

North Hills Crest Apartments, positioned on the Haltom City-North Richland Hills border, is made up of seven buildings on 5.27 acres. It has 80 one-bedroom units and 42 two-bedroom designs. Units average 513 sf; median rent is $514 per month. In contrast, the submarket’s average monthly rent is $663 for pre-1970 stock.

Hartnett says the partnership has three more multifamily properties to sell in its disposition. Two are scheduled to close within days, he says.