El Paso Gets Noticed by Multifamily Investors
The buyer of a 550-unit portfolio was new to El Paso and Greysteel was able to bring competitive offers from these new to the market investors attracted to the diversified economy and strong yield potential.
EL PASO—El Paso is turning investors’ heads these days, and some are new faces in the local investment landscape. A recent acquisition shows the appeal of multifamily properties here. La Privada and Terrace Hill Apartments, a 550-unit two-property multifamily portfolio, recently sold to private investors.
La Privada Apartments is located at 9030 Betel Dr. in the Mission Valley area of El Paso. The area primarily consists of small businesses, shops and restaurants, but is well-known for its missions, art galleries, museums and annual festivities. The 240-unit property consists of 13 two-story buildings and is comprised of one- and two-bedroom units with an average unit square footage of 703.
Terrace Hill Apartments is located at 4111 Westcity Court in West Central El Paso, which is home to several historic neighborhoods and districts, as well as a myriad of entertainment options, including a new Top Golf and Alamo Draft House Cinema. West Central El Paso is situated between Interstate 10 and the Franklin Mountains, with the University of Texas at El Paso centrally located. The 310-unit property consists of 13 two-story buildings and is comprised of studio, one- and two-bedroom units with an average unit square footage of 752.
Jack Stone, Doug Banerjee and Andrew Hanson from Greysteel’s Dallas office represented the seller, a private investment company, and solely procured the buyer.
“The 550-unit portfolio allows new ownership to add true scale in not only the 18th largest city in America, but one of the safest. Both properties will benefit from rent bumps with conservative interior renovations, which presented an additional value-add opportunity to the deal,” Stone tells GlobeSt.com. “The buyer was new to El Paso and we were able to bring very competitive offers from not just the buyer, but from many other groups who are new to the market at well. Most are attracted to the diversified economy and strong yield potential.”
The average rent for an apartment in El Paso is $775, a 4% increase compared to the previous year when the average rent was $745, according to a report by RentCafe. The most affordable neighborhoods in El Paso are Buena Vista/Hidden Valley, where the average rent goes for $635 per month, Cedar Grove, where renters pay $635 per month on average and Hacienda Heights/Sageland, where the average rent goes for $635 per month. The most expensive neighborhoods in El Paso are Castner Range/Fort Bliss Military Reservation ($880), North Hills ($880) and Las Tierras ($884).
The average size for an El Paso apartment is 817 square feet, but this number varies greatly depending on apartment type, says RentCafe.