Waterton Expands Dallas-Area Portfolio
This acquisition marks the firm’s 18th Texas community.
Waterton has acquired a 434-unit asset in Plano, Texas. Mission Gate is a 24-acre community built in 1999. The purchase marks the firm’s 18th property in Texas. Located at 8025 Ohio Drive, the apartment community is north of Dallas. The sales price was not disclosed.
The seller was Magellan Development Group, who purchased Mission Gate in 2017 according to Yardi Matrix data. Thirteen three-story apartment buildings make up the community. In prepared remarks, Jeremy Stern, vice president of acquisitions at Waterton, said that several units in the property are in need of updates, while others have been previously renovated. Common areas are also under plans to be redone.
Mission Gate apartments are a mix of one-, two- and three-bedroom homes averaging 965 square feet. Renovations will include new vinyl flooring, carpet, cabinetry and lighting and plumbing fixtures. Community amenities feature a pool, courtyards and select attached parking garages.
“We believe the value add potential at Mission Gate, combined with its proximity to major employment centers and access to highly rated schools made this a compelling addition to our portfolio,” Jeremy Stern, vice president of acquisitions at Waterton, told Multi-Housing News. “The product type as well as the increasing costs of home ownership provides an attractive rental option for prospective renters in the greater Dallas/Ft. Worth area.”
Employment centers within 3 miles of the asset include the Legacy Center, Hall Park and Granite Park. Combined, these spaces offer more than 35 million square feet of office space and access to a large job market. Residents are also located a 30-minute drive from downtown Dallas.
As of April, North Dallas maintains the nation’s largest rental pipeline. Employment had expanded 5.5 percent in Dallas, almost 1 percent above the national rate, as of November. In Plano specifically, employment growth has risen 2.4 percent over the last five years.
The acquisition of Mission Gate is Waterton’s third in Plano, with a nationwide total of 77 multifamily properties. It bought a 736-unit community in Ontario, Calif., in May, and sold a four-story asset in Stamford, Conn., in February.