MESQUITE, TX—Advenir has purchased the 295-unit multifamily asset, Mission Ranch, from California-based Virtu Investments for an undisclosed amount. This marks the investment firm’s third apartment acquisition in the Metroplex in the last six months.
Advenir tells GlobeSt.com the company is “extremely bullish” on the Dallas/Fort Worth market.
“Dallas has shown tremendous fundamentals both in in-migration and job growth. We also look at the factors of the quality of life and low cost of living and when you combine all that it works out well for the multifamily business,” says Todd Linden, chief acquisition office of Advenir.
The property, which will be renamed Advenir@Mission Ranch, is located in Mesquite, Texas, just east of Dallas. Advenir plans to continue the current renovation program in an effort to increase rental premiums. Renovations will include kitchen and bathroom upgrades and lighting upgrades. In previous projects in the area, Advenir says they invested approximated $3,000 per unit in capital improvements and received $75-$175 rental premiums.
Advenir@Mission Ranch is Advenir’s third multifamily acquisition in the Dallas/Fort Worth area in the past six months. The first asset, 334-unit Advenir@Mansfield, is located on the south of Arlington and the second purchase is the Advenir@Walnut Creek, a 256-unit project also in Mansfield.
“Our outlook and strategy identifies value-add properties where we can reposition them with greater improvements to achieve greater rental premiums,” adds Linden. “Dallas’s dynamic market has made our belief that we can obtain nice returns for our investors.”
The Dallas/Fort Worth multifamily market saw one of the largest increases in rentership over the last 12 months, notes Jones Lang LaSalle‘s Summer Multifamily Outlook. The report goes on to say that more than 4% of households are shifting away from owning residences, a trend seen across the state.
Advenir represented itself in the transaction and financing was secured by Braden Harmon of Berkeley Point Capital. Will Balthrope and Drew Kile of IPA Texas represented the seller, Virtu Investments.