Value-Add Opportunities Continue to Gain Momentum Among Multifamily Investors in Dallas-Fort Worth

CBRE is pleased to announce the sale of four value-add multifamily communities across Dallas-Fort Worth (DFW) as investors look to capitalize on the market’s positive momentum. CBRE’s Chris Deuillet and William Hubbard with CBRE’s Multifamily Investment Sales team facilitated the transactions on behalf of the sellers.

As occupancy and rental rates across DFW continue to grow, investors are seeking out value-add opportunities that allow them to enter the market at a lower cost.

“Even with the 23,000 units of brand-new multifamily product delivered last year, occupancy rates were a little over 97% at the end of 2021,” said Deuillet, senior vice president with CBRE. “Investors are looking at that, as well as increasing rental rates, and seeing the upside of putting their capital into Class B and C multifamily properties. Investors can make calculated property upgrades to see a sizeable return-on-investment, but we are also seeing impressive increases in rent just from renewals, too.”

The recently completed sales include:

• Liberty Park, a 67-unit multifamily community located at 2120 52nd Street in the East Oak Cliff neighborhood of Dallas. Built in 1971, Dallas County purchased the property from Reap Capital. Dallas County announced plans to turn Liberty Park into transitional housing for men coming out of prison and is a public-private partnership with the Regional Black Contractors Association.
• The Burgundy Apartments, located at 11911 Marsh Lane in Dallas. Zane Holdings sold the property to Jeanne and Chip Allen. The buyers purchased 111-units out of the 180-units of the fractured condo asset. They acquired an additional 21 HOA units during escrow with plans to acquire an additional 13 during the holding period, which gives them approximately an 80% ownership stake in the property.
• LBJ Station, a 249-unit property located at 8997 Vantage Point Drive on the south side of Loop 365 and Greenville Avenue. Infinity Point Property purchased the community from LBJ Station Limited in an off-the-market transaction. Danny Baker with CBRE also represented the seller in the deal.
• 500 Flats, a 248-unit community located at 500 E. Loop 820 in East Fort Worth. Makaan Investments Group & VFR Capital purchased the property from Goodlife Housing Partners on an off-market basis. Built in 1982, the property was 97% occupied at the time of sale.
  
  

“We are still experiencing a massive amount of capital entering the DFW multifamily market despite climbing interest rates,” said Hubbard, associate with CBRE. “Although the cost of debt is gradually becoming more expensive, rent growth across DFW is still very much present and investors both nationally and internationally are taking notice.”