Fort Worth makes up the majority of the west side of the DFW metroplex and has been garnering more attention in the past couple years as investors search for higher yields on acquisitions. The key demographics of the city per the 2010 census were: Population over 800K, Median income of $37K, and a 34% Hispanic population. Major employers are: Bell Helicopter, Lockheed Martin, Naval Air Station Reserve, Fort Worth ISD, and American Airlines. Interstate 820 is the beltway for the city with I-30 and I-20 running east/west connecting Fort Worth to Arlington and Dallas. I-35W runs north/south connecting the city to Hillsboro to the South and Denton to the North.
Per August 2015 ALN data, some key multifamily stats for the city: 93.5% occupancy with effective rents of $894 ($1.05/sf). Only 17% of properties offering concessions with less than 2 weeks free.
Many Class C properties are located in Fort Worth inside the 820 loop along I-30. Most of the newer class B properties are either north or south of loop 820. Class C properties in Fort Worth are trading in the $30K-$45K range (7.0%-8.0% cap rates) with Class B properties trading north of $70K/unit (6.5%-7.0% cap rates).
Here is a sampling of the market activity in the area:
For Sale:
Ridglea Square Apartments- 6020 Malvey Avenue, Fort Worth, TX (West Fort Worth submarket); 54 units built in 1960; No List price. Average rents of $801 ($1.20/sf); All Bills Paid. Interior upgrades include: vinyl flooring, white appliances, and laminate countertops.
Las Brisas- 6414 Brentwood Stair Road, Fort Worth, TX (East Fort Worth; SW Corner of I-30 and 820); 33 units built in 1969; No list price. Average rents of $594 ($0.94/sf); Resident pay utilities. Interior upgrades include: vinyl flooring, black appliances, and resurfaced countertops. Broker Pro Forma NOI: $112K at 8.0% Cap rate estimated sale price of $1.4M ($42K/unit).
Chaparral Apartments- 6520 Red Sierra Drive, Fort Worth, TX (East Fort Worth); 134 units built in 1969. Listed for $5,950,000 ($44k/unit). Average rents of $646 ($0.75/sf). T-6 Annualized NOI of $463K yields a 7.75% CAP on list price. Current debt on the property must be assumed.
Brazos on Hulen- 6625 S Hulen street, Fort Worth, TX ( Southwest Fort Worth); 100 units built in 1968; No list price. Average rents of $890 ($0.91/sf). Interior upgrades include: vinyl flooring, ceramic tiles, and black appliance packages. Property contains: Individual HVAC, water heaters and a flat roof.
Reserve at Village Creek- 444 East Renfro Street, Burleson, TX (South Fort Worth submarket); 191 units built in 2012; No list price. Average rents of $1,150 ($1.15/sf) with utilities billed separately. Interiors include: w/d hookups, black appliances, and granite countertops.
Under Contract:
Villas at Sierra Vista – 2819 Las Vegas Trail, Fort Worth, TX (West Fort Worth submarket); 227 units built in 1969/1979; No list price. Average rents of $567($0.81/sf) with utilities billed separately. T-6 Annualized NOI of $382K and Broker Pro Forma NOI of $619K. Interiors include: faux wood flooring and resurfaced countertops. Property contains a pitched roof, individual HVAC units, and 2 laundry facilities.
Serrano Ranch Apartments- 8222 Calmont Avenue, Fort Worth, TX (East Fort Worth submarket). 191 units built in 1979. List price of $6M ($31K/unit).
Summit View Apartments -4900 Bryant Irvin Road North, Fort Worth, Texas 76107. 167 units built in 1971. No list price. Video from listing broker:
Garden Gate- 6901 North Beach Street, Fort Worth, TX (North Fort Worth sub-market); 240 units built in 1995. List price of $16.7M ($70K/unit). Rents range from $719-$1,000/mo.
Closed:
Oak Tree Apartments – 3029 Lackland Road, Fort Worth, TX (West Fort Worth submarket); 32 units built in 1973. Average rents of $700 ($1.17/sf). Closed January 2015 with recourse bank debt.
Londonberry Apartments- 1401 Morrison Drive, Fort Worth, TX (East Fort Worth submarket); 240 units built in 1980. Closed in June 2015 with recourse bank debt.
Shadowood Apartments- 6701 Calmont Avenue, Fort Worth, TX (West Fort Worth submarket); 52 units built in 1964. Closed in June 2015 with Agency non-recourse debt.
Oakwood Apartments- 6351 Vega Drive, Fort Worth, TX (South Fort Worth submarket); 216 units built in 1985. Closed July 2015 with recourse bank debt due to lower than market occupancy.
Renaissance II Apartments- 2324 Ridgmar Plaza, Fort Worth, TX (West Fort Worth submarket) 51 units built in 1962. Closed August 2015 with 5 year recourse bank debt.
If you are interested in purchasing or refinancing a property in the DFW area, please reach out to me at: jeng@oldcapitallending.com or 214-300-5035.
