Vintage Complex Gets $93,750 Per Unit From Converter

DALLAS-Eight 21-year-old rental units in Greenville Avenue’s entertainment district have brought $93,750 apiece from a local buyer, armed with a plan to convert the two-building complex into condos. The deal’s sweet spot is the units are already condo deeded.

Bermini Ltd. of Dallas, now liquidating its multifamily holdings, got within $45,000 of its $795,000 ask for a gated complex on a half-acre at 6015 Oram St. The buyer of record is Georgetown Village Apartments Ltd., a local investor who’s in the process of converting three other small properties in the metroplex, according to John Barker, senior associate for Marcus & Millichap Real Estate Investment Brokerage Co.’s Dallas office.

“It’s the highest price per unit in East Dallas for an ’80s product,” Barker tells GlobeSt.com. The high price, he explains, was driven by its condo-deeded, class B-plus status, including individually metered units and private garages to sweeten the future sales prospects.

Barker says the new owner put down 23% and secured a $618,000 loan from Chicago-based LaSalle Bank. The five-year, 6.27% fixed-rate financing includes capital to cap off the play with a rehab, he says. “He typically buys, puts money into it and sells out,” says Barker, who teamed with Marcus & Millichap associate Will Jarnigan to close the deal.

The complex, with one vacancy at sale time, has three one-bedroom units with 1,250 sf each; one two-bedroom apartment with 1,360 sf; and a quartet of two-bedroom designs with 1,428 sf. Monthly rents are $995, $1,195 and $1,295.