Altus Snaps Up 1,200-Unit Apartment Portfolio in West Texas
The deal focused on the Midland-Odessa market, which has seen strong rent growth recently.
Altus Equity Group has acquired the Odessa Multifamily Portfolio, a six-property, 1,225-unit collection of multifamily communities located in the greater Midland-Odessa market of West Texas. Altus partnered for part of the deal with Wellings Capital. A purchase price was not disclosed.
The portfolio includes six garden-style apartment assets that all together have an average 92 percent occupancy rate, according to Altus. The new owner plans to undertake some “asset enhancement” initiatives, said Andy Eicher, senior vice president of investments at Altus.
The Dallas office of Marcus & Millichap’s Institutional Property Advisors, led by Senior Vice President of Investments Drew Graza, brokered the deal.
One of the assets is Woodview, a 232-unit property located at 4330 North Grandview Ave. in Odessa. According to Yardi Matrix, the fully-occupied property dates back to 1982 and offers one- and two-bedroom units that rent for an average of $1,277 a month. Woodview is subject to an $11.5 million CMBS loan provided by Fannie Mae.
Another asset in the portfolio, Madison Square, is located at 2201 Rocky Lane Road in Odessa. The 300-unit community was built in 1980. The asset is partially affordable with an occupancy of 95 percent, notes Yardi Matrix. It offers one- and two-bedroom units that rent for an average of $1,196 a month, and is likewise subject to a current $10.2 million CMBS Fannie Mae loan.
A third portfolio property, also in Odessa, is called Sunset. Dating to 1982, the property offers one- and two-bedroom units, renting for an average of $1,170 a month. The loan associated with the asset, also a current CMBS Fannie Mae loan, totals $10.5 million. It sold for $16 million in 2014, according to Yardi Matrix.
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Altus is no stranger to Texas, where it has invested in various property types. Last month the investor acquired Kennedale Light Industrial Park in the Dallas-Fort Worth Metroplex. The asset totals about 160,000 square feet in seven buildings.
Midland-Odessa sees strong rent growth
For its part, metro Odessa experienced an increase in median rents in 2024 of 13.2 percent, coming in at number 24 among small U.S. metros, according to Construction Coverage data. The annual rise in Midland was nearly $300 a month to a median at the end of 2024 to $1,977 a month, while the annual rise in Odessa median rents was a shade over $200, to $1,754.
Demand for apartments in the Midland-Odessa area is being driven by an energy sector-oriented economy that is spurring population growth. Midland’s population hit a recent low at 173,853 at mid-2021, but by mid-2024 had rebounded to 188,766, according to Census Bureau estimates. Odessa likewise has seen a population influx, growing from 160,809 in 2021 to 170,022 in 2024.
