– Performance Properties LLC has acquired the 416-unit Vista Buena Apartment Homes in North Dallas as the first property for its brand-new partnership targeting value-add multifamily assets from $10 million to $20 million.
"This is a classic value-add property with a good location and high occupancy," says David McQuaid, principal of Dallas-based Performance Properties and the new partnership.
Vista Buena, located at 13350 Maham Rd., is 98% occupied, markedly higher than the average occupancies of its submarket and the region. The one-, two- and three-bedroom apartments and townhomes range from 564 sf to 1,419 sf, some of which include fireplaces and built-in bookcases.
As for its location, Vista Buena sits on nearly 15 acres at the southern end of Richardson's Telecom Corridor, surrounded by a city of Dallas bike trail and just blocks from the $261 million High Five, a stacked interchange for Interstate 635 and North Central Expressway.
Vista Buena was developed in the mid- to late 1970s in four phases along Maham and Emily roads and Kit Lane, a desirable location in the highly sought after Richardson Independent School District. The immediate area includes some of the region's top employment centers – Texas Instruments Inc., Park Central and Medical City.
"Vista Buena is a well-located property in a transitioning neighborhood. It's time to take this property to the next level," McQuaid says, "and we are planning an extensive renovation to do just that." Enhancements will include landscaping, building exteriors and many interior improvements to the units. Residential perks currently include a clubhouse, four swimming pools and open parking.
McQuaid and Todd White, a principal in the new partnership, represented the new investment group. Steve Heldenfels and De'on Collins of Holliday Fenoglio Fowler LP represented the lender, ViewPoint Bank. Tom Flood of Multifamily Advisory Partners represented the seller, Santa Maria LLC. Performance Properties is Vista Buena's new property manager.
The Performance Properties' partnership is sourcing value-add opportunities of well-located multifamily properties throughout Dallas/Fort Worth. McQuaid, the partnership's point man, has 30 years of experience in the industry, honing his skills at the side of his father who founded Performance Properties more than four decades ago.
"Investing in this $10 million to $20 million niche does set us apart in the value-add category," McQuaid says. "There are not necessarily a lot of investors who are well capitalized and willing to invest in this particular asset class. Our advantage is the depth of Performance Properties' experience in the multifamily industry."
The partnership's timing dovetails with this year's stellar performance of Dallas/Fort Worth's multifamily sector. Strong economic fundamentals quarter after quarter, including one of the nation's highest jobs growth, have resulted in an uptick in apartment rents across the metroplex, most noticeably in the third quarter, according to locally based MPF Research. Year-over-year, rents rose 3.4%, marking 12 consecutive quarters of annual gains. Region-wide occupancy is 94.4%, its highest point in 12 years. Dallas/Fort Worth is second in the nation in employment growth, keeping apartment supply and demand in balance.
"Dallas/Fort Worth's apartment market only stands to get stronger as the national economy improves. We're interested buyers with a niche strategy," McQuaid says. "Our goal is to acquire 750 to 1,000 units per year during the next five to 10 years."
For additional information:
David McQuaid, 214.373.7305 x 4