WindMass Capital Purchases Dallas Portfolio
- Apr 14, 2020
WindMass Capital Partners has acquired a 1,656-unit multifamily portfolio spread across 38.6 acres in the Northeast Dallas submarket in a deal arranged by NorthMarq that saw the firm handle both sale and financing duties.
NorthMarq’s Dallas Investment Sales team of Managing Director Taylor Snoddy, Senior Vice Presidents Philip Wiegand and James Roberts represented both the buyer and seller of the Vineyards at the Ranch I & II, and also brokered the deal for the Beacon Hill Apartments’ transaction.
DP Partners LTD PS was the seller of the Beacon Hill Apartments and Stone Ranch Owners/Stone Ranch Owners Two LLC was the seller of the Vineyards at the Ranch I & II. NorthMarq’s Dallas debt/equity team of Senior Vice President & Managing Director Stephen Whitehead, Vice President William Hancock and Senior Vice President Lauren Bresky secured acquisition financing for the portfolio.
Mitchell Voss, founder & CEO of WindMass Capital Partners, said in a prepared statement the firm is planning renovations at the properties, which were built between 1984 and 1987.
Snoddy noted in prepared remarks that WindMass Capital has the ability to capitalize on the planned upgrades to the units and common areas to better compete within the popular submarket. Wiegand added the portfolio has tremendous upside because of the high rent growth submarket.
NorthMarq noted the team structured the bridge loan with flexibility to help the sponsor achieve his business plan. The team was able to get the sponsor pre-payment flexibility and the ability to fund 100 percent of the rehab costs and structure it around a collapsible ground lease.
Hancock noted in a prepared statement the team was able to deliver a deal that closed as submitted during the turbulent market conditions caused by the ongoing COVID-19 crisis. That gave WindMass the confidence to work with NorthMarq on both its debt and equity needs.
Both Vineyards at the Ranch I & II and Beacon Hill are located near I-635, just east of the I-75 “high five” interchange, and are adjacent to the LBJ/Skillman DART station.
The Northeast Dallas submarket has had a 15 percent population growth within a one-mile radius since 2010. Average household income is above $75,000 for those living within 3 miles of the properties and home values average more than $300,000. The submarket has seen an average annual rent growth of 5.5 percent over the past five years, ranking fifth in the Dallas-Plano-Irving MSA, while maintaining an occupancy level higher than 93 percent.
Top employers including Texas Instruments, Texas Health Presbyterian Hospital, Town East Mall, North Park Mall, the Telecom Corridor, Platinum Office Corridor and the CityLine project are all nearby. Those employers and others have helped the DFW area created 127,600 new jobs in the past year throughout the metroplex.
NorthMarq has been active in recent days. Last week, NorthMarq Capital provided a $25.3 million Fannie Mae loan to Capstone Apartment Partners to acquire Retreat at the Park, a 249-unit luxury community in Burlington, N.C., for $37.8 million.
Earlier this month, NorthMarq secured a 10-year, fixed-rate $22.5 million Fannie Mae loan for Investco Financial to refinance the third phase of Sawyer Trail, a 62-building multifamily property in Fredrickson, Wash. Last month, a NorthMarq team secured a $13 million refinancing package for Ontario Place Apartments, a 156-unit community in Omaha, Neb.