364-Unit Deal Buys Ticket Into North Texas

DALLAS-Colorado & Santa Fe Real Estate, using a class B asset to break into North Texas, has outplayed roughly 13 other would-be buyers pursuing the 364-unit Madison in North Dallas. The complex, marketed at $15 million, sits in a pocket where comparable product fetches in the low $30,000-per-door range.

Seller Archon Group’s reputation for its upkeep of properties and the location at 12800 Jupiter Rd. sparked the high number of offers for the 22-year-old complex during its five-week marketing run, says Roberto Casas, a Dallas director for Holliday Fenoglio Fowler LP. The Broomfield, CO-based winner was “probably the most qualified buyer and that’s why we chose them,” he says. “There was a bunch stacked in the same area.”

Casas tells GlobeSt.com that the upside for the region’s newest owner is “pushing rents and concessions’ burn-off.” On average, the 91%-leased Madison has been giving away one month on a one-year lease, he says. The average rent is 85 cents per sf while the average unit is 731 sf.

According to the Colorado & Santa Fe website, the Madison is its first multifamily property for a four-million-sf portfolio, which is 41% office, 32% retail and 26% industrial. The HFF dealmaker says Colorado & Santa Fe definitely is looking for more multifamily properties to buy in Texas.

Casas says the buyer is eyeing a five-year hold for the 23-building complex, set on 13.7 acres near the intersection of Interstate 635 and Northwest Highway. Greystar Management Co. of Dallas has been hired to lease and manage the one- and two-bedroom mix. Casas teamed with HFF managing director Bill Miller to ink the deal for the Irving, TX-based Archon, which took over the Madison in 2002 from an investment group in Morristown, NJ.