Lake Highlands Multifamily Asset Changes Ownership

August 5, 2019

Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced today the sale of Fountains of Woodmeadow, a 241-unit apartment complex in Dallas.
“This long-term family property features one-bedroom units, 36 percent of which have received significant interior improvements,” said Bard Hoover, Marcus & Millichap senior managing director investments.
Hoover, Nick Fluellen, Marcus & Millichap senior managing director investments, Will Balthrope, IPA executive managing director, Drew Kile, IPA senior managing director, Joey Tumminello, IPA Director, and Giuseppe Thum, IPA associate, represented the seller, a corporation based in Dallas, and procured the buyer, a limited liability company based in Los Angeles.
“Our team was able to leverage our platform and find an out-of-state buyer who has recently become very active in the Dallas-Fort Worth metroplex,” adds Tumminello. “The acquisition diversifies the new owner’s portfolio and creates an opportunity to provide superior returns for their investors.”
Originally constructed in 1985 on five acres, Fountains of Woodmeadow is 20 minutes from Downtown Dallas in the high-growth suburb of Lake Highlands, which has seen 5.7% annual rent growth for 1980s-vintage assets in the past two years.
The buyer of Fountains of Woodmeadow was selected after a competitive bidding process where a total of 11 offers were received, eight of which came from out of state. The new investor plans to expand upon an interior renovation program initiated by current ownership as well as to grow other income through utility reimbursements and increased ancillary fees to be more in line with comparable assets.
“Successful value-add renovation programs and enduring rent growth for Class B assets in the East Dallas and Lake Highlands submarkets continue to garner high levels of interest from both local and out-of-state investors,” commented Thum.


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