DALLAS, TEXAS (November 18, 2020) – Taylor Snoddy, managing director, James Roberts, senior vice president and Philip Wiegand, senior vice president of NorthMarq’s Dallas investment sales team secured the sale of The Muse. The 804-unit multifamily property is located at 3035 West Pentagon Parkway and is one of the top five largest communities in Dallas, Texas.
NorthMarq represented the seller, S2 Capital, LLC in the transaction. The buyer was Nitya Capital.
“This sale represents the largest workforce housing community to be sold in Dallas in 2020. Our team was able to identify a buyer who executed on the assumption of the exiting loan in under 60 days. Nitya plans moderate improvements to the community’s amenities and interior renovation scope,” said Snoddy.
The Muse presented investors with a unique opportunity to acquire one of the largest communities in DFW, with a wide range of value-add opportunities. It consists of a diversified unit mix (29 different floorplans) and boasts an impressive average unit size of 926 sq. ft. Residents enjoy convenient access to many of DFW’s major thoroughfares – most prominently the I-35/US 67 interchange which accommodates more than 150,000 vehicles per day. Additionally, Westmoreland Dart Station is located less than 1.5 miles from the property, offering a multitude of transportation options.
This location allows a short commute to some of the metroplex’s top employment and service providers including Dallas CBD, Methodist Charlton Medical Center, Bishop Arts District, Redbird Mall Development, Amazon Fulfillment Center, and Mountain Creek Business Park. While the central location of Muse promotes easy access to the greater DFW area, residents enjoy the serene and peaceful landscape of Five Mile Creek and Oak Cliff Nature Preserve, which surround the property.
Community amenities include: Access gate, business center, fitness center, laundry enter, leasing office, maintenance on-site and mature landscaping. Apartment amenities include: Ceiling fans, double stainless-steel sinks, dual vanities, electric black appliances, frost-free refrigerators, mini-blinds, multi-cycle dishwashers, nickel finishes, pantries, patio/balcony, tile backsplash, walk-in closets, washer/dry connections, wood-framed mirrors and wood-style flooring.
About the Dallas Market
In the past few years, the DFW metroplex has experienced tremendous growth; leading the nation in total jobs added three out of the last four years. More specifically, the Southwest Dallas submarket has directly benefited from this economic expansion with five-year average annual rent growth of 6.2%. More recently, the submarket recorded a 6% year-over-year increase – ranking first among all DFW submarkets. (MPF Q1 2020). These strong fundamentals have driven national industrial and logistics companies to Southwest Dallas, including Amazon, L’Oreal, Wayfair, FedEx who have all opened southern Dallas facilities in the past three years.
Located in Southwest Dallas, The Muse is located in an area that has been one of the top performing submarkets in all of DFW, achieving a five-year average annual rent growth of 6.2 percent – ranking first in the Dallas/Plano-Irving metro. More recently, the submarket recorded a year-over-year increase of 6% – which ranks first among all DFW submarkets (MPF Q1 2020). Additionally, the submarkets 5-year average revenue growth was 6.9%. We believe the strong performance of the submarket, coupled with the continuation of the interior renovation and addition of community amenities presents a new owner an opportunity to capitalize on a large discrepancy in rents.