Dealmaker: Marcus & Millichap Closes Two Dallas-Area Multifamily Sales for $40M

(Photo courtesy of Marcus & Millichap)

Marcus & Millichap, Calabasas, Calif., closed the sale of two apartment properties in Dallas and Fort Worth, Texas. The assets total 401 units and sold for over $40 million.

The properties included Luna Vista, a 236-unit asset in Fort Worth and Polk Villas, a 165-unit property in Dallas.

Al Silva, Senior Managing Director of Investments, and Ford Braly, First Vice President of Investments in Marcus & Millichap’s Fort Worth office, marketed the properties for two Dallas-based sellers. They also secured the buyers, both Metroplex-based investment groups.

Marcus & Millichap said both properties will undergo improvements to the infrastructure and operations to appeal to the area’s renter base. The buyers financed both acquisitions with fixed-rate agency loans.

Luna Vista is a 32-building property built in 1979 at the intersection of Interstate 30 and Loop 820, 10 minutes from downtown Fort Worth and downtown Arlington. “The acquisition presents our buyer with opportunity to achieve above-average returns through improved property management and interior finishes,” Silva said. “With a unit upgrade program and rent growth potential as leases turn over, ownership can create significant cash flow and value creation for years to come without having to undertake a major repositioning of the asset.”

Polk Villas, a 16-building property, was built in three phases between 1960 and 1973 near Bishop Arts District. “The location is a short commute to downtown Dallas and the Interstate 20 industrial corridor, one of the strongest employment centers in Dallas-Fort Worth,” Braly said. “The submarket recorded 4.1% rent growth over the past 12 months. We expect to see continued upward pressure on rates and strong investment interest from public and private entities as southern Dallas County’s population grows. Our buyer recently purchased two other properties from the Silva Braly Multifamily Team of Marcus & Millichap that are within five minutes of Polk Villas and will take advantage of economies of scale to reduce expenses across the portfolio.”