Multifamily Rents Go High as Affordability Lags
Strong economic growth of 109,000 jobs added for the year ending October 2018 has increased overall demand for rental housing, much of which has been satisfied by new supply of high-priced units.
CARROLLTON, TX—The Dallas/Fort Worth economy continues to add new jobs at an impressive rate, with approximately 109,000 jobs added for the year ending October 2018. This strong economic growth has increased overall demand for rental housing, much of which has been satisfied by new supply of high-priced units.
However, with affordability increasingly becoming an issue for more renters, the demand for affordable housing has also increased.
“New apartment supply has garnered the biggest headlines, but the untold story is that there is a limit to how many people can afford the high rents these new properties command,” said Carlos Vaz, co-founder and CEO of the Conti Organization. “As a result, we are seeing more demand than ever for our properties, especially since we place as much value on excellent operations as we do on improving their physical appearance.”
In its 39th Texas acquisition in 11 years, Conti Organization recently acquired Dawntree Apartments, a 400-unit garden-style apartment complex located at 1834 E. Peters Colony Rd. With the acquisition, Conti now owns more than 7,800 apartment units in Dallas/Fort Worth and is one of North Texas’ largest private multifamily property owners.
“Dawntree Apartments is located in one of the closest, most affordable submarkets in proximity to major job centers in the affluent suburbs of Plano, Frisco and The Colony,” said Stewart Hsu, co-founder and president of the Conti Organization. “Our expertise in adding value to solid, well-located assets makes Dawntree a perfect addition to our portfolio of attractive and affordable workforce housing communities.”
Conti acquired Dawntree Apartments from Steadfast Income REIT for an undisclosed price. The complex consists of 369,176 square feet on more than 23 acres. In the coming months, Conti will rebrand the property as Bella Vista Apartments.
“Conti Organization also owns nearby Villa Siena Apartments, a 256-unit property located within the same submarket as Dawntree,” Hsu tells GlobeSt.com. “Villa Siena, which was acquired in 2011, has experienced strong rent growth and solid occupancy so it supports Conti’s confidence in Dawntree’s value-add potential.”