Strong investor demand spurred by the growing economy in North Texas has kept Transwestern’s Dallas-based Multifamily Investment Services group busy, brokering at least 30 deals so far this year worth $560 million, including recent sales totaling $275 million of 12 apartment communities with 3,200 units.
“This year’s robust sales volume is indicative of the strength of the Dallas multifamily market right now. These 12 assets, consisting of both portfolio and individual property sales, span seven cities and three of the four major counties in the Metroplex, proving the depth of the North Texas region is not specific to submarkets,” Managing Director Taylor Snoddy said in a prepared statement.
Snoddy, Transwestern’s top overall producer in 2017, was part of the team that negotiated the transactions. The team also included Vice Presidents Philip Wiegand and James Roberts.
The team closed its 12 most recent deals within the past two months boosting its mid-year sales totals to 30 deals totaling $560 million, double the transactions and dollar amount closed in the same time the previous year. Transwestern closed $325 million in 15 deals in the first half of 2017.
“The strong and diverse economy with heavy net migration to North Texas has contributed to the robust sales volumes. The substantial net migration has contributed to continued rent growth in workforce housing,” Snoddy told Multi-Housing News.
Since 2014, Transwestern’s Dallas Multifamily Investment Services group has averaged a closing every seven business days, with transactions totaling 41,000 units and more than $2.4 billion in aggregate value. The team’s success is a direct result of their expansive database, deep relationships and a keen understanding of the local and national investment communities.
In March, the team of Snoddy, Weigand and Roberts represented the seller of the Oak Creek Apartments in Bedford, Texas, a 464-unit, Class B community at 1611 Oak Creek Lane. The asset was acquired by Transwestern Investment Group and S2 Capital on behalf of one of its managed funds.
The strong DFW metro apartment market is attracting investors, particularly those seeking upside in many submarkets seeing rent increases, according to the Marcus & Millichap Multifamily Research Market Report for the second quarter.
“First-time investors are targeting the Dallas-Fort Worth metroplex for opportunities. These investors are drawn to nation-leading job creation and healthy property operations, especially for Class B and Class C assets, where vacancy remains tight and rent growth is strongest,” the Marcus & Millichap report noted. “A diverse pool of buyers will continue to target a range of opportunities in the Metroplex this year, and strong investor demand will keep cap rates compressed as borrowing costs rise.”
A Look at the transactions
Transwestern released the following details on its 12 most recent transactions:
- Deerfield, a 256-unit community at 9670 Forest Lane, Dallas, and neighboring community, Snug Harbor, 236 units at 9590 Forest Lane, were sold on behalf of WRH Realty Services.
- Edentree, a 360-unit community at 1721 E. Frankford Rd., Carrollton, was sold on behalf of Beachwold Residential to a 1031 buyer.
- Chestnut Ridge, a 356-unit community at 8951 Randol Mill Rd., Fort Worth, was sold on behalf of Beachwold Residential to a New York-based buyer.
- Highland Road Village, a 332-unit community at 2704 S. Cockrell Hill Rd., Dallas, was sold on behalf of Code Capital.
- Carrollton Oaks, a 320-unit community at 2500 Guerrero Drive, Carrollton, was sold on behalf of a partnership between Nitya Capital and Ashcroft Capital to an all-cash buyer.
- Brentwood, a 292-unit community at 8300 Brentwood Stair Rd., Fort Worth, was sold on behalf of GWR Equities.
- Place on the Park, a 272-unit community at 2021 E. Pioneer Parkway in Arlington, was sold on behalf of GWR Equities.
- Pointe on Calloway, a 214-unit community at 200 Booth Calloway Rd., Hurst, was sold on behalf of S2 Capital to a local investment group.
- Hillstone on the Trail, a 176-unit community at 5707 Bellaire Drive S., and neighboring community Hillstone Trinity Oaks, a 166-unit community at 608 Royal Lane, was sold a Texas-based investment group, with Transwestern representing both buyer and seller.
- The Oaks, a 147-unit community at 4614 Pioneer Rd., Batch Springs, was sold on behalf of the seller to a West Coast buyer.