The Dallas-based Fluellen|Hoover multifamily investment sales team of Marcus & Millichap with Nick Fluellen, senior managing director investments, and Hoover facilitated the transaction.

“These transactions demonstrate the strong level of demand shown by investors for quality workforce housing in North Texas,” says Fluellen. “Each asset has a unique story and a common theme: the opportunity for new ownership to enhance value in a supportive market.”

Fluellen and Hoover worked with Institutional Property Advisors executive director Will Balthrope, and Drew Kile, senior director, on the marketing of one of the properties, La Jolla Terrace. Fluellen and Hoover represented the sellers and procured the buyers in the other four transactions.

“As more new class-A units are delivered and absorbed at significantly higher rental rates than in the class-B and -C space, investors have become increasingly confident in the value-add narrative and the ability to improve rents on older assets,” Fluellen tells GlobeSt.com. “Even stabilized, renovated assets are still being viewed, in a sense, as value-add opportunities because of the rent growth that we continue to see in the workforce housing sector.”

Jake Roberts, senior vice president capital markets, and Anita Paryani-Rice, first vice president capital markets, both with IPA Capital Markets, arranged acquisition financing for the purchase of Social House.

FORT WORTH—Continued demand by investors for quality workforce housing in North Texas, along with the opportunity for new ownership to enhance value in a supportive market are the impetuses for five multifamily properties to recently change hands. The properties have a total of 705 units and were sold for $45.625 million. The buyers were undisclosed.

“In the current economic landscape, a strong flow of investment capital seeks commercial real estate investment opportunities that can provide solid returns,” says Bard Hoover, first vice president investments with Marcus & Millichap. “The healthy market fundamentals in North Texas, coupled with opportunities to arrange attractive new debt and implement value-add strategies made these assets especially compelling.”

The properties are West Wind with 160 units in Irving, TX; La Jolla Terrace with 340 units in Fort Worth; Castle Glen with 48 units in Garland, TX; Northridge Court with 85 units in Cleburne, TX; and Social House with 72 units in Nacogdoches, TX.

“The metroplex's continued population and job growth rates are among the best in the nation and don't appear to be slowing down,” Hoover tells GlobeSt.com. “Additionally, when you factor in Fannie Mae and Freddie Mac's appetite to provide loans on affordable housing, a perfect storm is created for sellers to optimize values and buyers to still have yield and upside.”

The Dallas-based Fluellen|Hoover multifamily investment sales team of Marcus & Millichap with Nick Fluellen, senior managing director investments, and Hoover facilitated the transaction.

“These transactions demonstrate the strong level of demand shown by investors for quality workforce housing in North Texas,” says Fluellen. “Each asset has a unique story and a common theme: the opportunity for new ownership to enhance value in a supportive market.”

Fluellen and Hoover worked with Institutional Property Advisors executive director Will Balthrope, and Drew Kile, senior director, on the marketing of one of the properties, La Jolla Terrace. Fluellen and Hoover represented the sellers and procured the buyers in the other four transactions.

“As more new class-A units are delivered and absorbed at significantly higher rental rates than in the class-B and -C space, investors have become increasingly confident in the value-add narrative and the ability to improve rents on older assets,” Fluellen tells GlobeSt.com. “Even stabilized, renovated assets are still being viewed, in a sense, as value-add opportunities because of the rent growth that we continue to see in the workforce housing sector.”

Jake Roberts, senior vice president capital markets, and Anita Paryani-Rice, first vice president capital markets, both with IPA Capital Markets, arranged acquisition financing for the purchase of Social House.