Investors Hit Mach 1 Timing for Multifamily Assets
Some properties are being sold within two years, and this quick timing was evident with 12 apartment communities that recently sold in North Texas totaling 3,200 units valued at $275 million.
DALLAS—The multifamily sale environment is so intense that some properties are being sold within two years, says a brokerage expert. This was the case with 12 apartment communities that recently sold in North Texas totaling 3,200 units valued at $275 million.
“Investors are capitalizing on market opportunities and the market continues to perform,” Taylor Snoddy, Transwestern managing director, tells GlobeSt.com. “They are capitalizing by renovating with higher-end finishes, spending anywhere from $5,000 to $8,000 per unit, so you’re almost getting an A asset for B rents.”
Transwestern’s Dallas-based multifamily investment services group brokered the sales, led by Snoddy, along with Philip Wiegand and James Roberts, vice presidents.
“This year’s robust sales volume is indicative of the strength of the Dallas multifamily market right now,” said Snoddy. “These 12 assets, consisting of both portfolio and individual property sales, span seven cities and three of the four major counties in the metroplex, proving the depth of the North Texas region is not specific to submarkets.”
The properties are located in Dallas, Denton and Tarrant counties. Average DFW class-A rents are approximately $1,500 while B rents are in the $800 to $1,100 range, GlobeSt.com learns.
“Stronger rent growth is evident all over DFW, even in smaller submarkets, such as Arlington, where one of the properties is located,” Snoddy tells GlobeSt.com. “The future is positive for DFW.”
The properties range from 147 units to 360 units.
Deerfield, a 256-unit community at 9670 Forest Ln. in Dallas, and neighboring community Snug Harbor, a 236-unit community at 9590 Forest Ln., was sold on behalf of WRH Realty Services.
Edentree, a 360-unit community at 1721 E. Frankford Rd. in Carrollton, was sold on behalf of Beachwold Residential to a 1031 buyer.
Chestnut Ridge, a 356-unit community at 8951 Randol Mill Rd. in Fort Worth, was sold on behalf of Beachwold Residential to a New York-based buyer.
Highland Road Village, a 332-unit community at 2704 S. Cockrell Hill Rd. in Dallas, was sold on behalf of Code Capital.
Carrollton Oaks, a 320-unit community at 2500 Guerrero Dr. in Carrollton, sold on behalf of a partnership between Nitya Capital and Ashcroft Capital to an all-cash buyer.
Brentwood, a 292-unit community at 8300 Brentwood Stair Rd. in Fort Worth, was sold on behalf of GWR Equities.
Place on the Park, a 272-unit community at 2021 E. Pioneer Pkwy. in Arlington, was sold on behalf of GWR Equities.
Pointe on Calloway, a 214-unit community at 200 Booth Calloway Rd. in Hurst, was sold on behalf of S2 Capital to a local investment group.
Hillstone on the Trail, a 176-unit community at 5707 Bellaire Dr. S., and neighboring community Hillstone Trinity Oaks, a 166-unit community at 5608 Royal Ln., was sold to a Texas-based investment group, with Transwestern representing both buyer and seller in the transaction.
The Oaks, a 147-unit community at 4614 Pioneer Rd. in Balch Springs, was sold on behalf of the seller to a West Coast buyer.
This brings the Transwestern team’s sales volume at mid-year to $560 million, with a total of 30 deals in 2018.