Multifamily Monday: Three More Boom Years
The Dallas/Fort Worth multifamily market absorbed almost 20,000 apartment units during the past year, translating to a 6.5% rent increase. And, according to a ULI report, the market here and across the US should stay on that path for another three years.
Cantrell Co partner Sam Pettigrew (with his daughters at the Bird's Nest) says the growing economy is fueled in large part by the flourishing local economy and consistent job growth. The Metroplex created 132,400 jobs over the previous 12 months through the end of February, according to the Texas Workforce Commission. For the past 23 years, Texas has outpaced the country in job creation by a factor of more than two to one, he tells us. The level of job creation bodes very well for DFW multifamily landlords with 94.5% occupancy (on stabilized properties).
Sam says the lending market continues to improve (especially CMBS) with more debt and equity players available to buyers. This, combined with 12-year lows in apartment vacancy rates, bodes well for multifamily transactions in the Metroplex for 2015 and beyond. Sam closed on the 310-unit Rush Creek Apartments in Dallas last week and the 606-unit Spring Hill Apartments (pictured) in Dallas before that. This month, he’s going under contract on the Villa Encanto Apartments in Dallas, the Lancaster Apartments in Fort Worth and the Pine Ridge Apartments in Amarillo.
