Altus Equity Group Inc. is doubling down on commercial real estate in Texas. While cities in the eastern part of the state, such as Dallas and Austin, have attracted attention for their post-pandemic population growth, the investment firm sees strong potential in the Midland-Odessa metro. That confidence has led Altus to acquire a portfolio of 1,225 apartment units in the area.
The purchase, in partnership with Wellings Capital, covers six garden-style communities. According to Altus, the portfolio benefits from its location in Permian Basin, which includes a "booming energy economy and connectivity to major Texas cities."
Also, the acquired properties average 92 percent occupancy, with Altus forecasting the year-one yield to exceed 10 percent.
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Additionally, Midland-Odessa is expected to lead all Texas regions in real GDP growth through 2029, with median rents set to rise by 13.2 percent in 2025, according to a report from GREA.
Part of Altus' strategy, according to the company, is betting on under-performing properties in appealing cities with high potential.
"We're entering this investment with a strong margin of safety and clear operational upside," Andy Eicher, senior vice president of investments at Altus, said.
"With high occupancy, assumable loans in place, and proven demand in the market, this portfolio is positioned to allow us to drive substantial value through disciplined management and asset enhancement, while providing critical workforce housing to the community"
Recently, Altus made another acquisition in the Lone Star State that targeted the industrial sector. This involved the purchase of Kennedale Light Industrial Park in Dallas-Fort Worth, as it continues to look for value in Texas. The company, which specializes in both multifamily and industrial, holds $600 million worth of assets under management.
For multifamily as a whole nationally, more than 138,000 market-rate units were absorbed between January and March, a recent RealPage analysis showed. That's the highest first-quarter demand on RealPage’s record, going back more than 30 years.
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