“The Dallas/Fort Worth market has shown extremely strong growth and high demand for luxury residential properties, given the area's flourishing institutions. The new Chisholm Trail Parkway adds tremendous value to Verandas as it provides residents with easy access to downtown Fort Worth and further advances the area's development momentum,” said Jerry Murphy, vice president of investments for The Davis Companies. “We identified a need and strategically repositioned a tired and underutilized property to add value to this evolving neighborhood.”

The complex offers a variety of unit types, ranging in size from one-bedroom residences to three-bedroom townhomes. As a result of TDC and Marquette Companies' upgrades, the community now boasts an outdoor swimming pool, spa, 24-hour fitness center, clubhouse with TV lounge, business center, laundry facility and picnic area with barbecues. Interiors include 9-foot ceilings, crown moldings, brushed nickel fixtures, walk-in closets, patio or balcony space and upgraded appliances. Select units also have wood-burning fireplaces, built-in bookshelves, dual-sink vanities and direct garage access.

“We were attracted to Verandas based on its good bones and unique physical position in the immediate submarket,” said Trevor Ryan, director of asset management at Marquette Companies. “This repositioning, combined with our value-enhancing physical improvements, allowed us to increase operations and outperform our total return expectation upon sale.”

Sean Mabarak, principal of SPI Advisory represented the buyer in the sale while Dirk Goris, Ryan Reid and Jeremy Faltys of CBRE multifamily represented TDC and Marquette Companies.

“The ideal location of Verandas at Cityview, specifically its proximity to the recently completed Chisholm Trail Parkway, combined with the existing medical workforce jobs surrounding the property, were primary selling points for the buyer,” said Mabarak. “Equally attractive was the popularity of this growing submarket, which we expect will cause rents to increase to similar levels as seen in comparable markets such as the cities of Irving, Arlington and Bedford.”

Marcus & Millichap predicts low interest rates and a range of debt financing options will drive investment activity through the remainder of the year. An increase in interest rates could result in less aggressive offers as the cost of capital climbs and underwriting tightens, GlobeSt.com learns.

FORT WORTH—A diverse and growing economy is attracting investors to the Metroplex, increasing buyer competition for area apartment assets and accelerating deal flow. And, out-of-state investors are targeting the North Texas region for stabilized assets, according to a fourth quarter apartment report from Marcus & Millichap.

For instance, properties located in the north Dallas area, including the areas of Frisco, Allen, Plano, Richardson and McKinney, TX are in high demand, often commanding premium pricing and yields. The Arlington area and other suburbs of Northwest Fort Worth are also garnering healthy investor interest, with first-year returns averaging in the high 5% to mid-6% range, GlobeSt.com learns.

An example of one of those Fort Worth properties targeted by investors is Verandas at Cityview. The Davis Companies and Marquette Companies recently sold the luxury apartment community with 314 residences and prime amenities situated on 15 landscaped acres. The buyer was unidentified.

TDC/Marquette identified an outstanding redevelopment opportunity just outside of Fort Worth's growing medical district when it purchased the property and envisioned a substantial capital improvement plan in January 2013. Applying its combined repositioning expertise, the partnership transformed the former undistinguished housing complex into a luxury residential community, which is now 94% occupied, to accommodate the influx of medical, business and technology professionals flocking to the Metroplex. Verandas is located off the recently opened Chisholm Trail Parkway, just 12 minutes from downtown Fort Worth, and is near the Alliance and DFW International Airports.

“The Dallas/Fort Worth market has shown extremely strong growth and high demand for luxury residential properties, given the area's flourishing institutions. The new Chisholm Trail Parkway adds tremendous value to Verandas as it provides residents with easy access to downtown Fort Worth and further advances the area's development momentum,” said Jerry Murphy, vice president of investments for The Davis Companies. “We identified a need and strategically repositioned a tired and underutilized property to add value to this evolving neighborhood.”

The complex offers a variety of unit types, ranging in size from one-bedroom residences to three-bedroom townhomes. As a result of TDC and Marquette Companies' upgrades, the community now boasts an outdoor swimming pool, spa, 24-hour fitness center, clubhouse with TV lounge, business center, laundry facility and picnic area with barbecues. Interiors include 9-foot ceilings, crown moldings, brushed nickel fixtures, walk-in closets, patio or balcony space and upgraded appliances. Select units also have wood-burning fireplaces, built-in bookshelves, dual-sink vanities and direct garage access.

“We were attracted to Verandas based on its good bones and unique physical position in the immediate submarket,” said Trevor Ryan, director of asset management at Marquette Companies. “This repositioning, combined with our value-enhancing physical improvements, allowed us to increase operations and outperform our total return expectation upon sale.”

Sean Mabarak, principal of SPI Advisory represented the buyer in the sale while Dirk Goris, Ryan Reid and Jeremy Faltys of CBRE multifamily represented TDC and Marquette Companies.

“The ideal location of Verandas at Cityview, specifically its proximity to the recently completed Chisholm Trail Parkway, combined with the existing medical workforce jobs surrounding the property, were primary selling points for the buyer,” said Mabarak. “Equally attractive was the popularity of this growing submarket, which we expect will cause rents to increase to similar levels as seen in comparable markets such as the cities of Irving, Arlington and Bedford.”

Marcus & Millichap predicts low interest rates and a range of debt financing options will drive investment activity through the remainder of the year. An increase in interest rates could result in less aggressive offers as the cost of capital climbs and underwriting tightens, GlobeSt.com learns.