spotlight on richardson/garland, tx · spotlight on richardson/garland, tx september 2020...
TRANSCRIPT
© 2020 Greysteel / 1
PRESIDENT GEORGE BUSH TURNPIKE
DA
LLAS N
OR
TH TO
LLWA
Y
SPOTLIGHT ON RICHARDSON/GARLAND, TXSEPTEMBER 2020
RICHARDSON/GARLAND SUBMARKET
4,064Units of positive net absorption since 2015
4,383Units delivered since 2015 (2,365 units under construction as of Q3 2020)
Data courtesy of Greysteel Research, CoStar Realty Information, Inc. Survey includes multifamily properties greater than 10 units (20,751 units in aggregate). Fully affordable properties and the following asset types are excluded from the survey: senior, corporate, military, and student.
93.3%Occupancy rate as of Q3 2020
$1,869Average asking rent per unit as of Q2 2020
$2,265
$2,011
$1,630
$1,618
3 BDR
2 BDR
1 BDR
Studio
$0 $500 $1,000 $1,500 $2,000 $2,500
$0.70
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
0
500
1,000
1,500
2,000
2,500
3,000
2011
2012
2013
2014
2015
2016
2017
2018
2019 YTD
Effe
ctiv
e re
nt
/ SF
# o
f u
nit
s
Under Construction Deliveries Effective Rent/SF
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
0
250
500
750
1,000
1,250
1,500
1,750
2011
2012
2013
2014
2015
2016
2017
2018
2019 YTD
Vac
ancy
rat
e
# o
f u
nit
s
Net Absorption Vacancy %
Pipeline vs Effective Rental Rate PSF
Net Absorption vs VacancyAverage Market Rent Per Month
EXCLUSIVE LISTING: NORTH CREEK APARTMENTS
Market Overview
30
635
35E
75
78
© 2020 Greysteel / 2
Rent Comparables SEPTEMBER 2020
The report below features a sampling of properties located in the Richardson/Garland area. Please note the different locations
and adjust comparisons accordingly.
CONTINUE TO SALES COMPARABLESListed properties represent a small cross-sampling of the overall market. Data courtesy of CoStar Realty Information, Inc.
THE HENDRYGarland, TX
WINDHAM CHASERichardson, TX
PEBBLEBROOKGarland, TX
CAMELOTRichardson, TX
HUNTINGTON TOWNHOMES
Irving, TX
Property
Year Built/Reno 2017 1971 1970 1965/2006 1963
Occupancy 93.5% 91.5% 98.7% 95.7% 93.1%
Average Unit Size 1,062 SF 1,160 SF 998 SF 881 SF 1,032 SF
Rental Rates
Unit Type Per Unit Per SF Per Unit Per SF Per Unit Per SF Per Unit Per SF Per Unit Per SF
1 BDR $1,387 $1.56 $1,114 $1.29 $907 $1.33 $1,027 $1.38 $884 $1.03
2 BDR $1,612 $1.27 $1,223 $1.15 $1,118 $1.13 $1,282 $1.27 $1,030 $1.00
3 BDR $2,404 $1.35 $1,603 $1.16 $1,368 $1.02 $1,525 $1.31 $1,299 $1.00
Amenities
Balcony/Patio • • • •
Ceiling Fans • • • •
Dishwasher • • • • •
Fitness Center • •
Pet-Friendly • • • •
Pool • • • •Premium
Countertops • •Premium Flooring • • •
Stainless Steel Appliances •
Walk-in Closets • • • •
Washer/Dryer • •
© 2020 Greysteel / 3
Recent SalesThe report below features a sampling of properties sold since July 2019 in the Richardson/Garland area. Please note that
different locations, amenity base, asset vintage, unit sizes and mixes, and other variables contribute to variances in sales metrics,
and adjustments to comparisons should be made accordingly. Also note that sales comparables provide a snapshot of recent
transactions and are not a perfect predictor of future market movement and behavior.
SEPTEMBER 2020
CONTINUE TO EXCLUSIVE LISTING
ESENCIAGarland, TX
MEADOWLARK APARTMENTSGarland, TX
CASA DEL MARGarland, TX
GALATYN STATIONRichardson, TX
JUNCTION AT GALATYN PARKRichardson, TX
Property
Close Date March 2020 February 2020 November 2019 July 2019 July 2019
No. of Units 200 74 59 285 379
Year Built/Reno 1981 / 2012 1961 1975 2008 2017
SellerOut-of-Market Real
Estate Investment FirmLocal Real Estate Investment Firm Private Investor Out-of-Market Real
Estate Investment FirmLocal Real Estate Investment Firm
Buyer Private Investor Out-of-Market Real Estate Investment Firm Private Investor Out-of-Market Real
Estate Investment FirmOut-of-Market Real
Estate Investment Firm
Listed properties represent a small cross-sampling of the overall market. Data courtesy of Greysteel Research, CoStar Realty Information, Inc.
© 2020 Greysteel / 4
SEPTEMBER 2020Exclusive Listing
NORTH CREEK APARTMENTS | 9387 Pinyon Tree Lane, Dallas, TX 75243
For more information about this listing, please contact:
JACK STONEDirector | Investment [email protected]
DOUG BANERJEESr. Managing [email protected]
ANDREW MUELLERDirector | Investment [email protected]
CHRIS “CASTLE” CASTILLOAssociate | Investment [email protected]
ANDREW HANSONDirector | Investment [email protected]
Individually Deeded Condos - Low Real Estate Assessed Value North Creek was originally built as individually deeded condos and the parcels remain that way, but 100% of the units are owned by one owner, so there is no HOA in place and the complex is run like a normal apartment complex. However, since the units are individually deeded, the complex falls under the residential department at DCAD as opposed to the commercial department and the assessed value has remained at $4.1M since 2017 (including 2020). While there are no guarantees that the assessed values will remain this low, it’s not likely that they’ll increase substantially to catch up anywhere near the asking price soon.
Transit-Focused Location North Creek Apartments is conveniently located less than a quarter mile from I-635 and less than two miles away from US-75, making commutes shorter in almost every direction and creating access to anywhere in the metroplex right at the tenant’s fingertips. North Creek is located a mile and a half away from the LBJ/Central Station of the Dallas Area Rapid Transit (DART) Red Line rail system. Starting from Plano and connecting all the way to Oak Cliff, the Red Line rail system provides residents with quick and easy access to all ends of the Dallas metropolis. The Property is also located in a quiet neighborhood with a Walmart, Kroger Supercenter, local restaurants and other businesses close by.
Delivered Free-and-Clear North Creek Apartments is being delivered free and clear of debt allowing new ownership to maximize returns with a new loan. Contact the Greysteel Debt and Structured Finance team to discuss competitive financing options.
Value-Add PotentialCurrent ownership has invested close to $2M in capital improvements since acquiring the Property in 2017. Exterior upgrades include new roofs, exterior paint, landscaping improvements, and pool upgrades at both pools. On the interior, 60% of the units have been upgraded with new vinyl plank flooring, brand new appliances, two tone paint, resurfaced countertops, and new lighting and plumbing fixtures. Renovated units are achieving a $90-200/month premium over non renovated units depending on the floor plan with an average unit upgrade cost of $6,000 which equates to over a 20% return on cost for each upgrade done.
ON MARKET
© 2020 Greysteel / 5
DFWGreysteel | 10000 N. Central Expressway | Suite 750 | Dallas, TX 75231469.518.5040 | www.greysteel.com
Texas License 9003023Designated Broker | Doug Banerjee | 617101
For more information or to inquire about Greysteel, please contact Ari Firoozabadi, President & CEO | [email protected] | 202.417.3873Offices Nationwide | License Information and Online DisclosuresTexas Real Estate Commission Information About Brokerage Services | Texas Real Estate Commission Consumer Protection Notice
© 2020 Greysteel
INVESTMENT SALES
DOUG BANERJEESr. Managing [email protected] 617101
JACK STONEDirector | Investment [email protected] 572151
ANDREW MUELLERDirector | Investment [email protected] 633165
ANDREW HANSONDirector | Investment [email protected] 672103
JOHN MARSHALL DOSSDirector | Investment [email protected] 629000
WILL CLARKESr. Associate | Investment [email protected] 688511
MURPHY HOLLOWAYSr. Associate | Investment [email protected]
CHRIS “CASTLE” CASTILLOAssociate | Investment [email protected] 704332
CAPITAL MARKETSDANIEL HARTNETTSr. Director | Capital [email protected]
FISHER WELLSSr. Associate | Capital [email protected]
HARRISON COLEAssociate | Capital [email protected]
JONNY SIEWERTAssociate | Capital [email protected]
TRANSACTION SERVICES
Nicole CapobiancoVice President of Transaction Services
Yassi GhashghaiVice President of Corporate Services
Madison WellsSr. Transaction Coordinator
Sarah CarverSr. Transaction Coordinator
Keeley ByerLead Research Analyst
Kris FosterResearch Analyst
Kelsey BrendelSr. Designer