Marcus & Millichap (NYSE: MMI) has announced the sale and financing of The Apartments at Fountains Corner, a 418-unit multifamily asset in Fort Worth.
“On the market for the first time in more than 20 years, the property provides new ownership with a first-generation value-add opportunity,” said Al Silva, senior managing director investments in Marcus & Millichap’s Fort Worth office. “The opportunity is bolstered by the lack of competing multifamily communities within a two-mile radius, which is rare for a property located near so many economic drivers.” Silva represented the seller, Dallas-based WAK Management and procured the buyer, a Texas-based private investment group. Brian Adams, senior director with Marcus & Millichap Capital Corp. in Dallas, arranged the financing. The nonrecourse loan was structured with a 12-year fixed-rate of 3.85% and a 30-year amortization beginning after a period of three years of interest-only.
The 62-building community is located at the intersection of Interstate 20 and Granbury Road in Fort Worth near retailers, employers and schools. Texas Christian University, Hulen Mall, the Clearfork and Edwards Ranch developments and the new Chisholm Trail Parkway are all nearby. “We conducted 27 property tours and attracted 10 offers from investment groups across the country during a four-week marketing period and closed about 90 days after the buyer and seller reached an agreement,” concluded Silva. New ownership plans a multimillion-dollar renovation to the property, including building exteriors and enhancements to common area amenities and unit interiors. The property was built in four phases on 18.5 acres between 1967 and 1971 and has received significant capital improvements since 2015. The average unit size is 1,024 square feet.