Walker & Dunlop JV Pays $189M for 2 Texas Communities

Houston. Image courtesy of avMachine713 via pixabay

Magma Equities has continued to build up its Sunbelt portfolio with the latest acquisition of two communities in Texas. The firm acquired an apartment portfolio totaling 820 units in a joint venture with Walker & Dunlop Investment Partners and Pacific Life for $189 million. The undisclosed seller was Moody National Cos., according to Yardi Matrix data.

The Texas multifamily portfolio includes The Village at Bellaire in Houston and Lost Spurs Ranch in Roanoke. The 580-unit Houston property includes one- and two-bedroom units ranging from 769 to 1,393 square feet. The units at The Village at Bellaire were built with soaking tubs, stainless steel appliances and in-unit washers and dryers, while select units offer a fireplace, patio or balcony, built-in bookshelves and vaulted ceilings. The community’s amenities include a pool, spa, business center, clubroom, package concierge, barbecue grill and picnic area and fitness center. According to Yardi Matrix data, The Village at Bellaire is 95 percent occupied.

As the smaller community, Lost Spurs Ranch offers 240 units in one-, two- and three-bedroom floorplans ranging from 613 to 1,234 square feet. The units have a patio or balcony, walk-in closets, and washer and dryer connections. The common amenities include a business center, clubhouse, picnic area, fitness center, pool, internet cafe, sand volleyball court and playground. According to Yardi Matrix data, Lost Spurs Ranch is 98.3 percent occupied.

Expanding in the Sunbelt

With strong occupancy numbers, Magma has plans for a significant value-add campaign for the two communities. The overall plan will include renovating interiors, bringing rents up to market rates and creating additional revenue streams at both The Village at Bellaire and Lost Spurs Ranch.

Scott Ogilvie, director of acquisitions at Magma, said in prepared remarks that the firm is looking to continue growing its multifamily holdings across the Sunbelt in coming years. Magma recently entered the North Carolina market in January with the acquisition of a 309-unit apartment community in Charlotte, N.C., in a partnership with funds managed by Franklin Templeton. In the summer, the firm expanded its North Carolina presence with the acquisitions of Litchford 315 Apartments, a newly built 240-unit community in Raleigh, N.C.