The Delante in Dallas/Las Colinas and The Colonnade in San Antonio have traded hands, signaling an increase in transaction velocity as 2010 approaches.
DALLAS, Dec. 29, 2009 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has arranged the sale of two multifamily investment properties in Texas. In Dallas’ Las Colinas high-end submarket, the 258-unit, luxury Delante apartments (top left photo) asset was sold, and in San Antonio, the 312-unit Colonnade property (bottom left photo) changed hands.
Will Balthrope, (top right photo) a vice president investments and senior director in the Dallas office of Marcus & Millichap’s National Multi Housing Group (NMHG), and Ryan Epstein, an associate director of the NMHG, also in the firm’s Dallas office, represented the seller, a private development firm.
The buyer was Slosburg Cos. of Omaha, Neb.
“This resort-style asset was tracked closely by almost every buyer in the country, and sold on an all-cash basis as we approached the end of 2009,” explains Balthrope.
“This sale is significant for several reasons: It is the only luxury mid-rise to sell in Dallas in 2009, and it closed in only 26 days. In addition, there was significant interest in this property from both private and institutional investors. We showed the building 50 times and received 44 offers, which demonstrates that investors are interested in re-entering the local apartment market.”
The Delante is a 268,000-square foot, four- and five-story asset located at 1001 Lake Carolyn Parkway in Las Colinas, a high-profile master-planned community in Irving, a submarket of Dallas.
The mid-rise community has an excellent location near numerous corporate headquarters offices and across the street from the DART Orange Rail Station, which will connect the property to downtown Dallas and ultimately to the DFW Airport.
In a separate transaction, Balthrope and Epstein also brokered the sale of The Colonnade, a 312-unit Class A apartment community located near the South Texas Medical Center, in an affluent area of north central San Antonio. Balthrope and Epstein represented the seller, Greystar Real Estate Partners, as receiver for Midland Loan Servicing. Marcus & Millichap also represented the buyer, FSC Realty of Beverly Hills, Calif.
Located at 9898 Colonnade Blvd. near Interstate 10, the 12-acre, 284,389-square foot multifamily asset was developed with upscale amenities in 1994.
The property includes well-appointed one- and two-bedroom units averaging 927 square feet within the Colonnade Business Park, a 63-acre mixed-use development with office, hotel and retail tenants.
“During the five weeks that The Colonnade was on the market, we generated 51 offers and gave 52 tours of the property, which is a huge response to a multifamily asset located in San Antonio,” says Balthrope. “REITs, pension fund advisors, life insurance companies, high net-worth individuals and opportunity funds expressed interested in The Colonnade.”
“In the past 90 days, we have seen transaction velocity increase. Investors are stepping off the sidelines because we are at or near the bottom of the downward pricing trend and there has been a lack of for-sale product on the market during the past 18 months,” continues Balthrope.
“When jobs return in late 2010 and 2011 there will be strong rent growth that follows, and in anticipation of that time, we are beginning to see the results of pent-up demand from buyers that have raised capital to purchase distressed assets, but are not finding good quality assets at deep discounts. They are beginning to move today on quality real estate.”
Contact: Stacey Corso, Public Relations Manager, Marcus & Millichap, 2999 Oak Road, Suite 210, Walnut Creek, CA 94597.
(925) 953-1716 direct, (415) 672-6460 cell, (925) 953-1710 fax
