Investors See Upside of Secondary Market
A multifamily property offered increasing occupancy and rents due to employment in the area and proximity to Baylor University, which are both increasing its employees and students, respectively.
WACO, TX—Baylor University has recorded a large enrollment increase during the last decade that has created the need for additional housing in the area. And, investors view Waco as a secondary market with a lot of upside because of increasing occupancy and rents. A recently sold multifamily property offered both due to its proximity to Baylor University and employment in the area.
The loft-style multifamily complex, West Campus Lofts, is located at 805 S. 8th St. The sale price was undisclosed.
West Campus Lofts was redeveloped in 2017 from a historic school, South Waco Junior High School. The multifamily community offers a variety of two- and three-bedroom units for student living and young professionals.
Wellington Realty’s managing partner, David Shaffer, and investment sale associates, Caleb Jones, Tammy Shaffer and William Hubbard, were on the transaction team. The team is based in the company’s Dallas office.
“The newly renovated historic school had been vacant for years. The renovation not only helped the city, but it also has fulfilled a need for the community,” said Tammy Shaffer.
The complex is located off of Interstate 35, near dining and other attractions, including the famed Magnolia Market owned by Chip and Joanna Gaines, which has sparked redevelopment in the immediate area.
“West Campus Lofts allowed the new owner to take advantage of Baylor University’s 3% year-over-year enrollment growth by increasing occupancy,” David Shaffer tells GlobeSt.com. “Magnolia Market is driving a large number of tourists to the area and the new owner plans on creating value by offering Airbnb units.”
The complex has granite countertops and stainless-steel appliances. The amenities include a pool with a cabana, 24-hour fitness center, game room and a student study lounge.
“Moving forward, because of the city’s recent uptick in both employment and job growth, along with increasing prices in primary markets, secondary markets like Waco will continue to receive a lot of investor interest,” said Jones.