Marcus & Millichap Closes Sale of 1,164 Apartment Units Throughout Texas for $80.5M
DALLAS — Marcus & Millichap’s (NYSE: MMI) Dallas-based multifamily investment sales team has closed the sale of six multifamily assets within the state of Texas totaling $80.5 million. The communities contain a total of 1,164 units.
Four of the properties reside within the Dallas-Fort Worth area, known as the Metroplex, while another is situated 60 miles northeast of Dallas in Commerce, and the other is in Waco. The Metroplex-area properties include the 380-unit Spring Lake in Haltom City, the 306-unit Tradewind in Mesquite, the 200-unit Village at the Crossroads in Irving and the 76-unit Oaks Branch in Garland.
“The Metroplex’s diverse and growing economy continues to attract investors, creating increased buyer competition for apartment assets and accelerating deal flow,” says Nick Fluellen, a member of Marcus & Millichap’s multifamily investment sales team. “Local investors are particularly focused on properties with some value-add component, as was the case with these assets.”
The remaining two properties are the 128-unit Bradford Place in Commerce and the Village Condominiums, a 74-unit apartment asset in Waco.
“All of the properties provide new ownership with excellent opportunities to add value in various ways, including the continuation or implementation of strategic upgrade plans,” adds Bard Hoover, who, along with Fluellen, represented the sellers and procured the buyers in all of the transactions. “Some also have excellent upcoming expense reduction opportunities.”
The Dallas-Fort Worth area is experiencing high demand for multifamily lately, as 25,900 new apartment units were scheduled for delivery by the end of 2016, according to Yardi Matrix. The multifamily vacancy rate has remained around 5 percent, while Axiometrics notes that rents have grown at a 5.1 percent annual pace.
Evan Burke, Sean Scott and Trey Caldwell, associates at Marcus & Millichap, provided additional representation in the Bradford Place sale. Scott and Caldwell also assisted in the Village Condominiums sale.
Calabasas, Calif.-headquartered Marcus & Millichap is a commercial real estate investment sales, financing, research and advisory services firm. The company closed 9,000 transactions in 2016, with a value of about $42.3 billion. Marcus & Millichap’s stock closed at $26.03 per share on Tuesday, March 14, 2017, up from $23.84 per share just one year ago.
— Nellie Day