Suburban Dallas Community Changes Hands

JLL’s Capital Markets team secured acquisition financing for Frontline Holdings, which bought the 334-unit apartment community in Lewisville from InterCapital Group.

Frontline Holdings, a Los Angeles-based private real estate company, has purchased the 334-unit Westview Apartments in Lewisville, Texas, with the assistance of acquisition financing secured by JLL Capital Markets.

The community, located at 201 W. Southwest Parkway about 23 miles northwest of downtown Dallas, was sold by InterCapital Group.

Voya Financial provided the loan. Further details on the financing were not available. However, it is the second loan Voya has provided Frontline. The first closed in November 2017 for Park Gates of Cityplace in Dallas, according to JLL Managing Director Mark Brandenburg, who led the Capital Markets team on the Westview acquisition.

“Multifamily product in North Texas continues to pique the interest of investors everywhere, thanks to the region’s continued growth and sound economic fundamentals,” Brandenburg said in a prepared statement. “Frontline Holdings identified a great investment opportunity in Westview, which we anticipate will provide strong, long-term returns. We’re thrilled to play a role in assuring the acquisition of this tremendous asset.”

The property is close to I-35 for easy commuting around the Metroplex. Amenities include a swimming pool with Jacuzzis, fitness center, tennis court, playground, BBQ area and a dog-washing station. The apartments offer one- and two-bedroom floor plans and feature fireplaces, bay windows, private balconies and patios and ample storage.

In April, JLL’s Capital Markets team secured financing from Freddie Mac for Frontline Holdings to purchase Rock35, a 144-unit community in Round Rock, Texas. Located at 1500 S. Interstate 35 Frontage Road, the property is about 19 miles north of Austin, Texas, and consists of a mix of one- and two-bedroom units.

Other Frontline Holdings’ Texas multifamily assets include several in Dallas: Vine on North Park, 216 units; Aspen Creek, 192 units; Ivy Urban Living, 228 units; The Hamptons, 324 units; The Reserve, 267 units; Central Park, 144 units; Trinity Village; 216 units, and 5636, 169 units. San Antonio assets include The Colony, 333 units; Tuscany Park, 392 units, and 5 Fifty, 2014 units. The firm also owns Parkview Legends, a 206-unit community in McKinney, Texas.

The firm’s investment strategy focuses on acquiring value-add multifamily apartment buildings in rapidly growing markets.

Multifamily Sector Still Strong

JLL’s H1 2018 US Multifamily Investment Outlook report notes that private investors, like Frontline Holdings, continue to make up the largest share buyers in the sector, representing 62.5 percent of total acquisitions. The report notes multifamily real estate transactions remain strong despite increased new supply.

“The sector evidenced 10.2 percent growth in transaction volumes, representing $66.2 billion in asset transactions in the first half of 2018. This makes the multifamily sector the most liquid real estate asset sector in the U.S. In 2019, the amount of new deliveries is expected to begin to trail off, which is expected to allow fundamentals to mark increased growth,” the report stated.

JLL’s research found, however, that most of the new deliveries have been concentrated in urban submarkets making available suburban garden-style assets attractive to investors.

“This product type has attracted over $90.0 billion over the past 12 months, which accounts for 64.4 percent of the total investment market,” noted the report.