First BTR Project From Multifamily Firm Welker Properties Nears Groundbreaking In Melissa
A development firm with roots in the apartment industry is about to go vertical on its first single-family home community about 40 miles northeast of Dallas.
Welker Properties has begun to turn dirt on Wolf Creek Farms, a 343-unit build-to-rent project at Collin Street and Throckmorton Road in Melissa. The 32-acre property will also include amenities such as a clubhouse, fitness center, pool and lots of green space.
The road to a groundbreaking has been rocky, founder and CEO Andrew Welker said. A difficult financing environment stalled development activity in North Texas despite an urgent need for more housing as the region's population booms.
“Fortune favors the bold,” Welker said. “It’s one of the hardest times right now … but if you can get it done, I feel really good about where we’re going to be in 2025, 2026.”
Welker Properties has been buying and building multifamily properties since its launch in 2018. The company has purchased close to 1,900 units across DFW, Austin and Memphis, Tennessee, and it has an acquisition portfolio valued at $193.5M.
A growing league of developers and investors has jumped into BTR amid increased demand for single-family housing, especially from would-be homeowners hamstrung by rising costs. The industry has also benefited from out-migration from dense urban cores.
The Dallas area was the No. 2 market for BTR construction as of June, with more than 12,000 units under construction, planned or in lease-up, according to RealPage. The number of BTR homes in North Texas surged 102% between 2017 and 2022, with close to 4,000 units added, according to Republic Property Group.
Welker plans to begin vertical construction on the Melissa project later this month and deliver its first 20 to 30 units and the community amenities 12 months later. The estimated construction cost is $38M, Welker confirmed.
Once the first homes open, the company will add new units monthly. Welker said he expects the development to be fully built out by spring 2026.
The company has another BTR development planned in Cape Coral, Florida, and plans to pursue more projects in Texas. In the meantime, Welker said he aims to make a great first impression with Wolf Creek Farms.
“This is such a unique, pioneering product that we aren’t going to spread ourselves thin,” he said. “We are being very picky, and we want to take our time, because this is a long game for us and there’s so much to learn as you go along.”
