DALLAS—For the fourth straight month in December, average rent in Dallas declined, while Fort Worth average rent fell for the third month in a row, according to Axiometrics, the apartment and student housing market research and analysis firm. The lower rent translates into moderating apartment market performance in 2016 for both sides of the DFW area.
Dallas' December annual effective rent growth of 3.6% was two full percentage points below the 5.6% of December 2015. Fort Worth's 5.2% growth rate in December was 1.5 percentage points lower than the previous year's figure. December occupancy rates were lower than November's, which is common late in the year, in both Dallas and Fort Worth.
“DFW is finally feeling some of the effects of all the new supply hitting the market,” said Jay Denton, senior vice president of analytics for Axiometrics. “While demand has remained relatively steady as job growth has not declined significantly, supply has finally caught up with demand.”
Job growth in the metroplex is projected to add 105,000 jobs in 2017, according to Marcus & Millichap. An example of some of that supply near employment hubs hitting the market is an eight-property 2,048-unit multifamily portfolio spread throughout the Dallas/Fort Worth area. Current ownership has held each property for an average of 24 years.
The Fort Worth properties are Emerald Hills with 276 units, Normandale Manor with 122 units, The Woodlands with 346 units and Marine Creek with 248 units. The Garland properties are Pecan Knoll with 358 units and Broadway Manor with 134 units. Cedar Point of Arlington has 272 units and Quail Ridge in Grand Prairie has 292 units.
Institutional Property Advisors (IPA) has the exclusive listing. Will Balthrope, executive director, and Drew Kile, senior director, along with associate, Joey Tumminello, and Al Silva, senior vice president investments of Marcus & Millichap, are representing the private seller.
“These assets will provide new ownership with diversity and scale supported by strong population and job growth,” says Balthrope. “This one-of-a-kind portfolio presents the multifamily investment community with an outstanding value-add opportunity in one of the fastest-growing markets in the country.”
Other completed multifamily transactions point to the continued confidence in job and population growth. Villas Del Lago Apartments, a 248-unit apartment community in northwest Dallas' Bachman Lake neighborhood has sold at an undisclosed sales price. The buyer was Overmore LLC, a California investor which made the purchase in a 1031 exchange. The seller was a Dallas-based syndication group led by Jean-Marc Landau, which had owned the asset since 2015.
“Recent capital improvements and stringent property management practices, in concert with Dallas' booming employment drivers and swelling population, support the community's high occupancy level and ability to further enhance value,” says Mark Allen, senior associate in Marcus & Millichap's Dallas office.
Built in 1974, the property was renovated in 2015. At the time of the sale, the community was 98% occupied. The apartment complex is located at 2911 Clydedale Dr., within minutes of downtown. Dallas Love Field Airport, Stephen C. Foster Elementary School and DART bus lines are nearby.
“The Bachman Lake area has seen recent capital investment in retail development and multifamily repositioning,” notes Sevak Keshishian, vice president investments of Marcus & Millichap. “The area benefits from relatively high density and the Northwest Highway 12 corridor's strong traffic counts.”
As previously reported, within Uptown, Routh Street Flats is a 208-unit midrise luxury apartment complex built in 2015 located at 3033 Routh St.
DALLAS—For the fourth straight month in December, average rent in Dallas declined, while Fort Worth average rent fell for the third month in a row, according to Axiometrics, the apartment and student housing market research and analysis firm. The lower rent translates into moderating apartment market performance in 2016 for both sides of the DFW area.
Dallas' December annual effective rent growth of 3.6% was two full percentage points below the 5.6% of December 2015. Fort Worth's 5.2% growth rate in December was 1.5 percentage points lower than the previous year's figure. December occupancy rates were lower than November's, which is common late in the year, in both Dallas and Fort Worth.
“DFW is finally feeling some of the effects of all the new supply hitting the market,” said Jay Denton, senior vice president of analytics for Axiometrics. “While demand has remained relatively steady as job growth has not declined significantly, supply has finally caught up with demand.”
Job growth in the metroplex is projected to add 105,000 jobs in 2017, according to Marcus & Millichap. An example of some of that supply near employment hubs hitting the market is an eight-property 2,048-unit multifamily portfolio spread throughout the Dallas/Fort Worth area. Current ownership has held each property for an average of 24 years.
The Fort Worth properties are Emerald Hills with 276 units, Normandale Manor with 122 units, The Woodlands with 346 units and Marine Creek with 248 units. The Garland properties are Pecan Knoll with 358 units and Broadway Manor with 134 units. Cedar Point of Arlington has 272 units and Quail Ridge in Grand Prairie has 292 units.
Institutional Property Advisors (IPA) has the exclusive listing. Will Balthrope, executive director, and Drew Kile, senior director, along with associate, Joey Tumminello, and Al Silva, senior vice president investments of Marcus & Millichap, are representing the private seller.
“These assets will provide new ownership with diversity and scale supported by strong population and job growth,” says Balthrope. “This one-of-a-kind portfolio presents the multifamily investment community with an outstanding value-add opportunity in one of the fastest-growing markets in the country.”
Other completed multifamily transactions point to the continued confidence in job and population growth. Villas Del Lago Apartments, a 248-unit apartment community in northwest Dallas' Bachman Lake neighborhood has sold at an undisclosed sales price. The buyer was Overmore LLC, a California investor which made the purchase in a 1031 exchange. The seller was a Dallas-based syndication group led by Jean-Marc Landau, which had owned the asset since 2015.
“Recent capital improvements and stringent property management practices, in concert with Dallas' booming employment drivers and swelling population, support the community's high occupancy level and ability to further enhance value,” says Mark Allen, senior associate in Marcus & Millichap's Dallas office.
Built in 1974, the property was renovated in 2015. At the time of the sale, the community was 98% occupied. The apartment complex is located at 2911 Clydedale Dr., within minutes of downtown. Dallas Love Field Airport, Stephen C. Foster Elementary School and DART bus lines are nearby.
“The Bachman Lake area has seen recent capital investment in retail development and multifamily repositioning,” notes Sevak Keshishian, vice president investments of Marcus & Millichap. “The area benefits from relatively high density and the Northwest Highway 12 corridor's strong traffic counts.”
As previously reported, within Uptown, Routh Street Flats is a 208-unit midrise luxury apartment complex built in 2015 located at 3033 Routh St.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
