Ladera Ranch Apartments is a garden-style multifamily complex in Irving, TX.
IRVING, TX—Healthy demographics and corporate expansions continue benefiting apartment operations in the Dallas/Fort Worth metroplex. Strong job growth, fostered by companies such as Charles Schwab and TD-Ameritrade expanding in the area, is driving a migration increase and boosting the number of households in the metro, according to Marcus & Millichap's third quarter Dallas multifamily research report.
These factors have underpinned the need for housing, placing downward pressure on vacancy during the previous four quarters, and pushed the average effective rent above $1,000 per month, setting a record high. As demand has outpaced past supply additions, builders are ramping up construction this year with deliveries significantly exceeding the previous five-year average, says Marcus & Millichap.
In addition, sales of existing multifamily assets continue at a healthy clip. Investor interest is picking up in the metroplex as transaction velocity has jumped 12% at the half-way point of the year. In the prior annual period, sales moved up 8%.
An example of this velocity is the recent $19.2-million Fannie Mae loan to finance the acquisition of an Irving, TX multifamily property. Ladera Ranch Apartments is a garden-style multifamily complex comprised of 24 two-story residential buildings, plus a standalone leasing office with a total of 280 units. Built in 1983, the property was previously known as Wind Tree Apartments.
The borrower is Aldwin Apartments, and its managers are John Whitman and Seth Weinroth. Hunt Mortgage Group provided the loan.
“In 2014, the seller invested approximately $1.6 million in exterior improvements to the property, including a full clubhouse renovation, and new exterior siding and painting,” says Colin Cross, vice president at Hunt Mortgage Group, who managed the transaction.
The term of the loan is 12 years with three years of interest only, followed by a 30-year amortization schedule.
“The borrower plans to continue to improve the property by implementing interior renovation,” Cross tells GlobeSt.com. “The property is in good condition and offers superior curb appeal. We were pleased to facilitate this acquisition for such a quality repeat sponsor.”
Common area amenities include two swimming pools, a tennis court, two laundry facilities and a playground.
“John and Seth are not only repeat Fannie Mae clients, but they are return Hunt Mortgage Group sponsors,” explained Vic Clark, managing director with Hunt Mortgage Group. “We have been working together for nearly 20 years and value this long-term relationship immensely.”
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
