Metroplex BTR Asset Trades for $35M
Making its debut in the sector, Viking Capital purchased The Townhomes at Bluebonnet Trails.
Viking Capital and GW Capital have acquired The Townhomes at Bluebonnet Trails, a 114-unit, single-family rental asset in Waxahachie, Texas, roughly 30 miles south of Dallas. The property traded for $35.2 million. Northmarq arranged the sale and financing.
Quannah Partners previously owned the 2021-completed asset, which according to Yardi Matrix data, was subject to a CMBS construction loan of $10.6 million. Northmarq Capital originated the debt, while Citibank acted as trustee and Wells Fargo as the master servicer.
The acquisition of the BTR asset at 168 Verbena Drive marked Viking Capital’s first venture into the single-family rental market. The Townhomes at Bluebonnet Trails encompasses 58 four-bedroom and 56 three-bedroom rental townhomes. The two-story units average 1,843 square feet and feature attached two-car garages.
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U.S. Route 287 and Interstate 35E are roughly 1 and 6 miles away, respectively. Waxahachie Sports Complex and Brown Singleton Park are within walking distance. Several retail and dining options can be found within 3 miles.
Northmarq Regional Managing Director Taylor Snoddy and Senior Vice President Eric Stockley, as well as Vice President Charles Hubbard, arranged the sale. Managing Directors Kevin Leamy and Lauren Bresky organized the financing.
Metroplex BTR investment soars in 2024
Single-family rental investment ballooned throughout the Metroplex this year. Investors purcahsed 760 SFR units year-to-date as of November, a figure already eclipsing the units sold throughout the entirety of last year—roughly 160 rental townhomes—according to Yardi Matrix data.
As Dallas-Fort Worth’s BTR inventory grew on average by about 1,960 units yearly since 2020, SFR rents and occupancy tempered, the data provider shows. Advertised asking SFR rents were down more than 3 percent year-over-year in November, while the occupancy rate trended lower by 1.5 percent during the same period.
In November, another Metroplex SFR asset traded. Taylor Morrison sold Yardly Dechman, a 142-unit rental townhome community in Grand Prairie, Texas. Northmarq brokered the deal on behalf of the seller.
