Foreclosed Facility Goes to Austin Buyer

MCKINNEY, TX-An Austin, TX private partnership brought an all-cash deal to the table to snag the 202-unit Village of Stone Brooke. The investor acquired the senior citizen independent living facility, which has an assessed value of $13.5 million, out of foreclosure.

Ryan Maconachy with Apartment Realty Advisors’ National Seniors Housing Group in Dallas says the three-year-old asset at 5701Virginia Pkwy. was foreclosed on by MMA Financial in spring 2008. Maconachy, who marketed the asset with ARA’s Ed LaFrance tells GlobeSt.com the product had been on the market since that time.

However, it’s only been since early 2009 that pricing expectations and offers became more realistic. “We had about 10 offers in total, including a lot of folks coming in who lowballed the price, knowing this was a distressed asset,” he comments.

Ultimately, the Austin partners got the nod because they offered all cash, which automatically led to an assurance of closing. “Obviously, with an all-cash buyer, there’s no financing contingency. When it comes right down to it, it’s more attractive when someone can close in a couple of days after due diligence is completed,” Maconachy remarks.

Village of Stone Brooke was 53% occupied at time of closing. According to a press release issued by ARA, the buyer plans an extensive renovation and repositioning plan to rebrand the property. LaFrance, who was quoted in the release, said the buyer expects it will take 18 months for the property to reach stability.

According to the Collin Central Appraisal District, Joplin Partners Ltd. sold the asset to Dallas buyer ZA Virginia Gardens LC in 2005. MMA Financial, operating under the name Munimae Special Purpose Asset Facility LLC took possession of the complex in May 2008. The floor plans consist of one- and two-bedroom units.