Tuesday , 27 September 2016
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Republic Buys Project in Dallas’ White-Hot Apartment Market

Rush Creek Apartments sold in Dallas, which leads the nation in job growth.

Rush Creek Apartments sold in Dallas, which leads the nation in job growth.

DALLAS – HBP Rush Creek Hospitality Ltd., a California investor, has sold the 310-unit Rush Creek Apartments in Dallas to Republic Real Estate Fund II.

Rush Creek is a 29-building complex set on 11 acres on Community Drive, a couple of miles north of Love Field airport.

“The region’s apartment vacancy is at a 12-year low, which currently is fueling investment interest in assets of all classes. Given the market dynamics, this year and beyond should be strong for multifamily transactions,” says Sam W. Pettigrew III, partner in Dallas-based Cantrell Co. & Partners, which represented the seller.

Dallas/Fort Worth’ leads the nation in job growth, which has stimulated its multifamily market. Urban Land Institute analysts predict the region’s multifamily market will remain particularly strong through at least 2017. As a result, investment properties are in high demand.

The 86%-leased Rush Creek has significantly below-market rents for the Bachman Lake-Webb Chapel submarket, where monthly rates have increased 6% on average in the past year. Republic Funds will make major improvements to the exterior and upgrade units to capitalize on the property’s value-add potential.

“Rents have been steadily rising in this submarket,” Pettigrew says. “Rush Creek has an attractive unit mix and just needs some upgrades to participate in the growth opportunity.”

Rush Creek features one-, two- and three-bedroom units, many with functional fireplaces. Units range from 450 sf to 1,350 sf.

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