Marcus & Millichap’s IPA Sells 21-Property Portfolio

The properties consist of 5,995 units spanning five states.
Chesapeake Apartments in Dallas is one of the properties sold in the 5,995-unit portfolio transaction.

Chesapeake Apartments in Dallas is one of the properties sold in the 5,995-unit portfolio transaction.

Dallas—Marcus & Millichap’s Institutional Property Advisors (IPA) division, which specializes in serving institutional and major private real estate investors, has sold a 21-property apartment portfolio consisting of 5,995 units. The properties span five states, including Texas, Georgia, Maryland, South Carolina and Virginia.

Most of the communities are in the Dallas and Houston markets, with four and 13 properties, respectively. Georgia, Maryland, South Carolina and Virginia each had one property in the portfolio. All of the properties were built between 1969 and 1982, making them ripe for value-add opportunities.

“Buyers seeking to capitalize on a true value-add Texas multifamily opportunity were enthusiastic about this compelling offering as the bulk of this one-of-a-kind portfolio is located in the high-growth markets of Dallas and Houston,” said IPA Executive Director Will Balthrope. “The opportunity to acquire multifamily investments across multiple markets allowed the principals to diversify their portfolio and build scale as investors continue to chase yield.”

Balthrope represented the seller in the transaction along with Norman Eastwood, Marcus & Millichap’s senior vice president of investments, Drew Kile, IPA senior director, and Jennifer Campbell, IPA associate director.

The team also found the institutional buyers for the portfolio, who had originally purchased a small subset of the original portfolio, as well as several private investors. Marcus & Millichap Associate Kurt McGarry also provided representation.

IPA stressed the value-add opportunities for the portfolio, especially for the Dallas and Houston properties.

“Dallas/Fort Worth is firing on all cylinders as job growth continues to draw new residents and supports advancement in the region’s apartment operations,” Eastwood said. Dallas/Fort Worth’s job growth is one of the strongest in the nation, with the metro adding 94,700 jobs in the past year.

The Houston properties are also “significant,” reflecting “the abundant interest and activity there as investors continue to show strong optimism for Houston’s long-term economic outlook,” Campbell said.

Marcus & Millichap’s brokers of record are Tim Speck in Texas; Michael Fasano in Georgia; Bryn Merrey in Maryland and Virginia; and Raj Ravi in South Carolina.