Joint venture capitalizes on value-add strategy for luxury apartment community in Fort Worth
FORT WORTH, TEXAS – November 23, 2016 – The Davis Companies (TDC) and Marquette Companies today announced the sale of Verandas at Cityview, a luxury apartment community with 314 residences and prime amenities situated on 15 beautifully landscaped acres. The complex offers a variety of unit types, ranging in size from one-bedroom residences to three-bedroom townhomes. TDC/Marquette identified an outstanding redevelopment opportunity just outside of Fort Worth’s growing medical district when it purchased the property and envisioned a substantial capital improvement plan in January 2013. Applying their combined repositioning expertise, the partnership transformed the former undistinguished housing complex into a luxury residential community, which is now 94 percent occupied, to accommodate the influx of medical, business and technology professionals flocking to the burgeoning Metroplex. Verandas is located off the recently opened Chisholm Trail Parkway, just 12 minutes from downtown Fort Worth, and is proximate to the Alliance and DFW International Airports.
“The Dallas/Fort Worth market has shown extremely strong growth and high demand for luxury residential properties, given the area’s flourishing institutions. The new Chisholm Trail Parkway adds tremendous value to Verandas as it provides residents with easy access to downtown Fort Worth and further advances the area’s development momentum,” said Jerry Murphy, vice president of investments for The Davis Companies. “We identified a need and strategically repositioned a tired and underutilized property to add value to this evolving neighborhood.”
“We were attracted to Verandas based on its good bones and unique physical position in the immediate submarket,” said Trevor Ryan, director of asset management at Marquette Companies. “This repositioning, combined with our value-enhancing physical improvements, allowed us to increase operations and outperform our total return expectation upon sale.”
As a result of TDC and Marquette Companies’ upgrades, the community now boasts an outdoor swimming pool, spa, 24-hour fitness center, clubhouse with TV lounge, business center, laundry facility and picnic area with barbeques. Interiors include: nine-foot ceilings, crown moldings, brushed nickel fixtures, walk-in closets, patio or balcony space and Frigidaire or Samsung appliances. Select units also have wood-burning fireplaces, built-in bookshelves, dual-sink vanities and direct garage access.
Sean Mabarak of SPI Advisory represented the buyer in the sale; Dirk Goris, Ryan Reid and Jeremy Faltys of CBRE Multifamily represented TDC and Marquette Companies.
“The ideal location of Verandas at Cityview, specifically its proximity to the recently completed Chisholm Trail Parkway, combined with the existing medical workforce jobs surrounding the property, were primary selling points for the buyer,” said Sean Mabarak, a principal at SPI Advisory. “Equally attractive was the popularity of this growing submarket, which we expect will cause rents to increase to similar levels as seen in comparable markets such as the cities of Irving, Arlington, and Bedford.”
TDC owns and manages commercial and multifamily properties in the Northeast as well as in Pittsburgh, Washington D.C., North Carolina, South Florida and metropolitan Chicago, and has a long history of successfully repositioning historic commercial office buildings and multifamily residences. The firm is currently repositioning the River City Renaissance portfolio in Richmond, VA, a 30-building, 600-unit, multi-family portfolio which the company acquired via two distressed asset acquisitions. Together with Marquette, the company was also responsible for repositioning Woodfield Crossing, a 662-unit apartment property in Rolling Meadows, IL and is involved in the ground-up development of over 2,000 units of new multifamily housing, in locations across the Eastern United States.
About The Davis Companies
Committed to excellence in both investment performance and operations, The Davis Companies is an integrated real estate investment, development and management firm headquartered in Boston that has invested over $4 billion in gross asset value through real estate equity, debt, and fixed-income securities. A unique combination of capital markets, development and management expertise allows The Davis Companies to nimbly tackle complex and contrarian opportunities. Directly, and with its valued partners, The Davis Companies currently owns a real estate portfolio of approximately 12 million square feet across the Eastern United States.
About Marquette Companies
Since 2010, Marquette has successfully executed on over $1.5 billion in acquisition and ground-up development of multi-family assets, of which more than half of those transactions were value-add in nature. With over 12,000 units currently under management and historical experience with many thousands during its 33-year history, Marquette brings the expertise to execute many different types of acquisitions comprised of core-plus, value-add, and ground-up development, as well as note purchases and distressed sales. Marquette’s success is largely due to our strong track record in executing value-add business plans, turnaround opportunities, and development / lease-up opportunities that maximize returns for our institutional partners.
Contact: Lauren Michaels