29 March 2010

Gables Residential Sells Dallas Apartments to California Investor

Dallas News

A California real estate investor has made its first push into the North Texas apartment market.

CIM Group's purchase includes two properties in the popular West Village neighborhood in Dallas' Uptown district: the 103-unit 3636 McKinney apartments and the 75-unit West Village apartments, at 3839 McKinney Ave. CIM also purchased the 334-unit Knoxbridge apartments, near the corner of Knox and Travis streets.

The investor, which specializes in urban-style real estate projects, bought the rental units from Gables Residential, which owns or manages more than two dozen apartment communities in the Dallas-Fort Worth apartments area.

The West Village properties were built in 2005 and are on top of retail space. Terms of the transaction were not disclosed, but the units are valued for taxes at almost $22 million.

The Knoxbridge, constructed in 1993 and 1995 at 4649 Cole, is listed on the tax rolls at more than $27 million.

As part of the deal, CIM also bought a Gables project in Houston apartments.

Gables will continue to manage all the Texas properties, which total 820 units.

Gables senior vice president Doug Chesnut said the developer decided to sell the properties because it was "overweighted" with Dallas-area apartments and had more in the works.

"We took the opportunity to move assets," Chesnut said.

CIM said in a statement that the apartments it bought are all in "districts positioned for economic expansion."

The investor also owns a mixed-use development called Penn Field in Austin.

CIM is a real estate fund manager that makes both private equity and debt investments in urban communities across North America. It has offices in Los Angeles, Oakland, Calif., and Bethesda, Md.

The Gables Dallas apartments sale is the second recent transaction involving high-end North Texas rental properties.

In December, Nebraska-based Slosburg Cos. purchased the five-story Delante Las Colinas apartments.

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