Rents and Demand are on Rising Trajectory in Midland
Energy prices have displayed a stable trading range between $40 and $50 a barrel, resulting in the Midland economy to respond in kind, specifically, with strong fundamentals in the multifamily sector.
MIDLAND, TX—Because energy prices have displayed a stable trading range between $40 and $50 a barrel, the Midland economy has responded in kind; specifically, the multifamily sector is reporting strong fundamentals. As a result of this re-emerging demand, in concert with seemingly manageable supply volumes, both occupancy and rent growth show positive momentum, according to Berkadia.
As a result of these positive fundamentals, multifamily assets are trading in the area. One recent example is Anatole on Briarwood, a 250-unit garden-style community located in Midland.
Berkadia arranged $21.75 million in acquisition financing for the asset. Senior managing director Tucker Knight and director Nicholas Murphy of Berkadia’s Houston office arranged the loan on behalf of Olympus Property, a full-service multifamily investment and property management firm headquartered in Fort Worth. Freddie Mac originated the 10-year fixed-rate loan with five years interest only.
“Due to the sponsor’s success on two previous transactions in this market, Freddie was able to provide a long-term fixed-rate solution that was accretive to the borrower,” Murphy explains.
Built in 2014, the property’s one-, two- and three-bedroom units offer walk-in closets, washer/dryers, dishwashers, granite countertops, ranges, ovens and garbage disposals. Community amenities include a business center, clubhouse, coffee bar, sundeck, TV lounge, fitness center and swimming pool.
“Despite a rising interest rate environment, investors are still positive about the opportunities that multifamily properties present, especially in the Midland area where rents and demand are on a rising trajectory,” Knight tells GlobeSt.com. “Additional rhetoric surrounding trade and tariffs has contributed to developers experiencing higher construction costs, allowing for a stable supply of inventory in one of the state’s high-demand areas.”
Located at 5200 Briarwood Ave., Anatole on Briarwood is situated in the Greathouse area of Midland. The community is located near key transit hubs and amenities.
Midland Airpark is less than 15 minutes away and Loop 250 is five minutes away, offering access into and out of Midland, and the Midland International Air and Space Port. Bush Tennis Center is less than five minutes away, and Midland Park Mall is less than 10 minutes away with retail stores that include Coach, Oakley, Ulta and Dillard’s.
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