Back-Up Buyer Closes on 208-Unit Complex

DALLAS-A 10-year owner has turned over a 208-unit complex to one of this year’s leading class C buyers in northeast Dallas, Cash Investments LP of El Paso. As with its other purchases, upside lies in a high vacancy and stepped-up management policy.

Cash Investments, led by Richard Aguilar, has paid close to the $3.8-million ask for the 60%-leased Willows on Hunnicut at 7526 Hunnicut Rd., a mix of one- and two-bedroom apartments renting for $510 and $605 per month. “It’s a real strong cash on cash pro forma. He just has to market the property more effectively,” Al Silva, investment associate for Marcus & Millichap Real Estate Investment Brokerage Co. in Dallas, tells GlobeSt.com. “It’s a management-intensive submarket. Once he fills up the building, the returns will really be good.”

Aguilar has nearly 300 more units under contract. In June, he added 966 units to his northeast Dallas cache to boost the total to 7,800. Silva says Cash Investment picked up the Hunnicut deal when another would-be buyer’s contract fell out for the eight-acre property of 15 Asset Management of Boca Raton, FL. “This fit right into their investment strategy for Dallas,” Silva says of Aguilar’s latest acquisition.

According to Silva, the complex will undergo some exterior upgrades. Built in 1973, the 16-building complex, with units of 760 sf and 970 sf, has leases with few concessions embedded into the terms, says Silva, who teamed with Marcus & Millichap’s Kelley Sparkman to broker the sale. “It’s a management play,” Silva emphasizes.