BoA Sells 147-Unit Foreclosure

DALLAS-In a 40-day contract to close, a private investor from San Francisco has beat 12 other would-be buyers chasing the foreclosed 147-unit Wyndham Court Apartments in North Dallas. It wasn’t the highest offer, but it was all cash, proving once again that money talks in today’s economic climate.

Bank of America had Nick Fluellen, senior investment adviser in Dallas for Marcus & Millichap Real Estate Investment Services, and Scott Harris in the firm’s Chicago office steering the sale of the 16-building complex at 6603 E. Lovers Lane. Fluellen says the 60%-leased asset’s location near White Rock Lake, major freeways and seven miles from Downtown Dallas was the drawing card for offers ranging from $2 million to $3 million, several of which were aimed at the leveling the land and building new.

“He made a very compelling offer. And, it was all cash so that helped,” Fluellen says, adding there was only one other all-cash offer on the table. The asset hit the market in as-is condition and without an ask, with the broker adding that “they were of the mindset they were going to sell the deal and meet the market.”

At sale time, 20% of the units were renovated. Work began on the 35-year-old complex in 2005, but Fluellen says there is a significant amount of upgrades and deferred maintenance left to do. He tells GlobeSt.com that the new owner is “trying to figure out the extent of the rehab,” but is expecting to pump $5,000 to $10,000 per unit into the value-add play.

Wyndham Court Apartments contains 72 one-bedroom units in 450-sf and 480-sf floor plans, with the balance in two- and three-bedroom designs as large as 1,300 sf. Rents range from $550 to $900 per month.

Marcus & Millichap’s Will Jarnagin and Michael Ware, also in the Dallas office, brought in the buyer. Fluellen says the investor with other holdings in the area is a hands-on owner who’s savvy with turnarounds.

“He was a good quality buyer with great terms and a competitive price. It shows if it’s priced right, there are buyers out there,” Fluellen says. “There are still opportunities and there are still deals going to the finish line.”