Virtus Grabs 2 Dallas-Based M-F Housing Communities
- Jun 12, 2014
To serve the growing Hispanic community in the area, Virtus Real Estate Capital, of Austin, has bought a portfolio of two multi-family housing developments in Dallas.
The properties, Bayou Bend and Pecan Square, totaling 748 units of Class B apartments, were purchased in a joint venture with a local partner and property management company, according to the news release.
“The two properties have the largest average unit size in the submarket. (They) are in the best location within the Bachman Lake submarket,” Kevin White, director of acquisitions, Virtus Real Estate Capital, told CPE. “Residents have easy access to major highways and are able to walk to grocery stores, restaurants and retailers.”
Built around 1982, the two properties are located within walking distance of each other, in the center of northwest Dallas. Both apartment complexes possess one- and two-bedroom floor plans with access to the bus system and Highways I-635 and I-35. The private equity firm intends to shell out $2.2 million in upgrades to the existing properties imminently. The upgrades will include new flooring, lighting packages, appliances, signage, landscaping and upgrades to the amenity spaces, including the pool areas, according to White.
What sets Virtus apart from some other real estate investment firms is that it likes to invest on specifically focused demographics, such as the aging and growth of the baby boomer generation, the coming of age of the millennials, the growth of the Hispanic population in the country, and the transitory nature and decreased job tenure of the American worker.
Since the two properties are in a submarket that is 92.7 percent Hispanic, Virtus will have a specific marketing strategy that will effectively reach the target tenant pool in that submarket. This submarket has grown by 2.5 percent over the last two years and is expected to grow an additional 6.7 percent over the next five years, White added.
Although Dallas remains a target market for Virtus, the company is also seeking opportunities in other Texas and Oklahoma markets.