Multifamily - Debt

Amid market upheaval, NorthMarq secures sale/financing of 1,656 unit portfolio in North Dallas submarket

DALLAS, TEXAS (March 31, 2020) – NorthMarq arranged the sale and financing of Vineyards at the Ranch I & II and Beacon Hill for WindMass Capital Partners. The two properties represent a combined 1,656-unit community spread across 38.62 acres in the highly transactional Northeast Dallas submarket. Both Vineyards at the Ranch and Beacon Hill have an irreplaceable location, benefitting from immediate access to I-635 (260,000 vehicles per day), just east of the I-75 “high five” interchange, and are adjacent to the LBJ/Skillman DART Station.

NorthMarq’s Dallas Investment Sales team of Taylor Snoddy, managing director, Philip Wiegand, senior vice president, and James Roberts, senior vice president represented both buyer and seller on the Vineyards at the Ranch I & II transaction and also brokered the Beacon Hill transaction. DP Partners LTD PS was the seller of Beacon Hill Apartments and Stone Ranch Owner/Stone Ranch Owners Two, LLC was the seller. 

“We want to renovate and are already starting to work with the neighbors around us to make the area better,” said Mitchell Voss, founder & CEO of WindMass Capital Partners. “We view this as an opportunity to do something like the Village — having so many units, we can have the best personnel and staff on site.”

“The portfolio has tremendous upside in what is already a high rent growth submarket with competitive advantage due to the size of the deal,” said Wiegand. “The buyer has the ability to capitalize on planned upgrades to its units and common areas to better compete within a submarket already benefiting from these type of renovations,” Snoddy added.

NorthMarq’s Dallas debt/equity team of Stephen Whitehead, senior vice president/managing director, William Hancock, vice president and Lauren Bresky, senior vice president secured acquisition financing for the property. The bridge loan was structured with a great amount of flexibility to help the sponsor achieve his business plan. Not only was the NorthMarq team able to get the sponsor pre-payment flexibility, but they were also able to fund 100 percent of the sponsor’s rehab cost and structure around a collapsible ground lease. 

“In an extremely turbulent time in the market, we were able to deliver a deal that closed as submitted. This surety of execution is what has given WindMass the confidence to work with NorthMarq on both their debt and equity needs,” said Hancock. 

Property Details
The properties are situated in the highly sought after Northeast Dallas submarket with a 15 percent population growth within a one-mile radius since 2010. The surrounding demographics are compelling, with average household income above $75,000 within three miles of The Properties and home values in the immediate vicinity averaging over $300,000+.  

Market Overview
Over the last five years, the submarket has recorded an average annual rent growth of 5.5 percent, ranking fifth among the Dallas-Plano-Irving MSA, while maintaining an occupancy level over 93 percent. This strong growth can be attributed to proximity to some of the area’s top employment drivers including Texas Instruments Corporate Headquarters, Texas Health Presbyterian Hospital, Town East Mall, North Park Mall, the Telecom Corridor, Platinum Office Corridor, and the CityLine project. 

The area has a work force of over 225,000 employees and is expected to keep growing. Last year, DFW led the nation in total jobs added, creating 127,600 new jobs throughout the metroplex. Additionally, the properties feed into the highly coveted Richardson ISD, which attracts a family-oriented tenant base that benefits from proximity to Thurgood Marshall Elementary School, Lake Highlands High School and Richland Community College. The Northeast Dallas submarket remains one of the healthiest submarket due to these compelling contributing factors.

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of more than $14 billion, loan servicing portfolio of more than $61 billion and the multi-year tenure of our nearly 600 people.