Our June multifamily market report focuses on the Lonestar State and the big news today—as we go to press on this digital edition—comes out of the Dallas/Fort Worth Metroplex. In collaboration with ARA, Lincoln Property Co. has sold Lincoln Las Colinas, a 784-unit apartment community in the Las Colinas neighborhood of Irving. Though the property was picked up for an undisclosed price by institutional investors (advised by J.P. Morgan Asset Management), ARA says the sale was among the largest single-asset multifamily transactions in the state’s history. In fact, in a press statement, Brian Murphy, a member of ARA’s Dallas team, said, “Lincoln Las Colinas’ timeless construction, its location on the lake, and its proximity to the Irving Convention Center and the new DART Orange Line, among the most desirable DART lines in Dallas, has rendered this community irresistible to residents.” Occupancy currently stands at 96.3 percent. The asset was built in two phases in 2010 and 2013 and showcases two different architectural styles. Phase I consists of 510 units in both a wrap style and a garden style, while Phase II consists of 274 units in a garden style. But the waterfront location on Lake Carolyn seems to provide its true competitive edge. After all, who can resist a water view? But, as all great asset managers know, leasing success is all about working with the assets you have, however limited, and positioning them in the best light possible. The journey starts with due diligence even before the asset is acquired. This month’s Finance & Investment feature delves into the due diligence process with insights from Wood Partners, Passco and Pinnacle. According to MHN Contributing Editor Poonkulali Thangavelu, due diligence processes that apartment investors undertake typically involve the same sort of basic research to check out the physical condition of the property, its legal situation and business potential. Insights regarding the local market provide additional perspective about the acquisition’s investment potential. The property’s online persona and capabilities are also explored by the due diligence team and presented to the decision makers. Likewise, when making the decision to rent an apartment, consumers will want to visit the property first. Now, more than ever before, that search starts online, so it pays to keep up with the latest digital marketing techniques, including best-in-class photography and video walk-throughs. However, keep in mind that if the reality of the site visit falls short of the virtual visit, the prospect could be lost forever.
Diana Mosher, Editorial Director