Seller Sheds Edison Multifamily for Upside Potential
WindMass Capital recently purchased The Edison, motivated by Pacific Team Management’s potential pricing considerations, which were achieved because of the potential upside of the asset.
DALLAS—Beacon Hill Apartments, now known as The Edison, recently sold for an undisclosed price to WindMass Capital. Seller Pacific Team Management was motivated by the attractive price achieved due to the potential upside of the asset.
Located at 9959 Adleta Blvd., the multifamily property has access to Interstate 635 and the Central Expressway. Parks, retail and schools are within walking distance. The three-story building consists of 396 one- to two-bedroom units built in 1984 and remodeled in 2003. The Edison amenities include three pools, a racquetball court, a club room and two laundry rooms as well as secured access gates.
Matthews Real Estate Investment Services senior associate Dan McQuaid was the lead agent in the transaction. McQuaid sourced the buyer, which had the goal of adding to its existing Dallas-Fort Worth portfolio.
The buyer plans to implement a value-add program to improve rents as well as the surrounding area. WindMass has already begun working on interior upgrades to the units. The property was roughly 80% occupied at the time of sale.
“I was able to navigate through several complexities in the deal to ensure we made it to the finish line,” said McQuaid. “Ultimately, this was a win-win situation for the buyer and seller. The seller achieved a great result and can now reposition their capital. The buyer acquired an excellent investment opportunity in which they will be able to increase the value of the multifamily asset through upgrades.”
The complexities included a quick close, simultaneous contract closing and a looming ground lease.
“There was a ground lease that needed to be collapsed,” McQuaid tells GlobeSt.com. “Two separate contracts had to close simultaneously and the buyer took over management 45 days prior to close.”
This is the largest multifamily deal that WindMass Capital has acquired to date. The buyer is also purchasing 1,260 units directly across the street and has plans to operate the two properties as one collective community similar to The Village in Dallas.
Strong economic underpinnings have fostered a healthy apartment market. The DFW multifamily market finished 2019 as the top performer in the country, anchored by strong job and population growth, changing demographics, limited single-family housing supply, and urban revivals, according to a fourth quarter report by Avison Young.
From an inventory perspective, DFW is now the third largest multifamily market, behind only New York and Los Angeles metros. The market absorbed more than 24,500 units in 2019, leading the nation in front of the New York City metro and more than double the Houston metro. Fundamentals show no signs of slowing, as the market has nearly 39,000 units under construction, says the AY report.