DFW: Consistency is Key
Virginia-based Harbor Group International president Richard Litton Jr tells us the Texas market has shown consistent job and population growth and Richard says he expects fundamentals to continue to improve in the Dallas/Fort Worth area. (Just what we need, more Cowboys fans.) Because of that, he expects continued rent growth over the next six to 12 months across Dallas, Houston, and Austin. Just yesterday, HGI tells us affiliates of the company funded a significant preferred equity investment in the purchase of the 612-unit Class-A Bella Madera Apartments in Lewisville by Block Real Estate Services. In the last 15 months, HGI affiliates have funded $48M of preferred equity investments and mezz loans.
Richard tells us HGI continues to invest in key markets throughout the US where the economy is thriving or recovering. That keeps Houston and Dallas on the radar because both markets have been consistent performers, he says. HGI was eager to acquire more Metroplex properties after selling two Dallas assets earlier this year. The Bella Madera deal follows another acquisition last month of Arlington's 660-unit Forest Ridge. HGI plans to sink about $2.5M into a modernization effort to upgrade amenities and improve curb appeal. The property is 93.5% occupied. HGI has more than 5,700 units in Texas including 3,000 in DFW.
