Dallas-Fort Worth: Multifamily Outlook 2024

The Dallas/Fort Worth (DFW) region stands out as a beacon for savvy real estate investors in a landscape where opportunity meets growth. As we look towards 2024, the multifamily market in DFW showcases robust development and unrivaled growth potential, making it an ideal time to consider your next investment move.

Let's explore why DFW is poised to offer compelling opportunities in the multifamily sector.

A Thriving Economic Backbone

At the heart of DFW's appeal is its?dynamic workforce growth, which is expected to lead the nation with a workforce nearing 4.5 million by year's end.

• This surge propels the region towards becoming the nation's third-largest employment hub, narrowing the gap with Los Angeles significantly from pre-pandemic times.
• Such momentum underscores a thriving economy ripe for real estate investments.

Unmatched Development Activity

DFW is witnessing an unprecedented construction boom, with over?72,000 units under construction.

• Areas like Allen-McKinney and Frisco spearhead this growth, showcasing a development pipeline surpassing many major U.S. metros.
• This bustling activity marks the Metroplex as the country's most active apartment development site, highlighting the confidence in the region's growth trajectory.

Sustained Investment Appeal

Despite global economic headwinds, DFW's multifamily market has maintained its allure among investors.

• The region ranked impressively in terms of sales volume and trading count, standing tall among the top five nationally last year.
• This resilience is a testament to DFW's enduring appeal, buoyed by?nation-leading job growth?and a vibrant economic landscape.

Targeted Investment Opportunities

?Amidst this expansive growth, specific areas within DFW present particularly attractive investment propositions.

• Locations like McKinney, Ellis County, North Oak Cliff-West Dallas, and South Arlington-Mansfield emerge as strategic choices, where recent adjustments in rent benchmarks signal promising upside potential.
• These pockets of opportunity allow investors to tap into areas with burgeoning demand and favorable market dynamics.

Our latest Multifamily opportunity - Westcreek Ranch -McKinney, Texas

Deal Brochure: Click here

Webinar Link: Click here

Property Video: Click here?

Investment Highlights

• Targeting ~ 20% annualized returns
• 3-5 year hold
• Top operator in the Dallas Fort Worth area (Ashalnd Greene with over $1 Billion in acquisitions, and exits at 28% Average Annual Return with an Average hold of 2.8 years)
• A- location with A+ schools
• 240-unit Class B apartment complex in McKinney, Texas (Dallas/Fort Worth)
• $50k minimum investment
• 506C: Accredited Investors only
• 50% Depreciation tax benefits
• Average cash flow: 5.76%
• World-class reporting: Monthly financial reporting and quarterly webinars for updates.

Blending Cash Flow, Growth, and Depreciation-Tax benefits.

Why We Love This Deal?

(1)? Off-Market – Only Buyer with Opportunity to Purchase:

They had the exclusive opportunity to secure this asset directly from the seller, off-market. This positions our investment uniquely, ensuring we stand apart in the marketplace with this exclusive deal.

(2)? Low Basis – Per Unit Cost Well-Below Comps:

The acquisition cost is significantly below the market comparables. For context,?The Rustic of McKinney, a nearby property, was recently sold for 15% more than our contracted price,?highlighting the advantageous deal we've secured.

(3)? Strong Location (McKinney, Texas) – Tremendous Area Growth:

McKinney has experienced a?staggering 325% population growth over the last two decades. The city continues to flourish with new developments, making it a strategic location for investment. The property's proximity to significant employment centers and its location within the highly-rated McKinney ISD further enhance its appeal.

(4)? Value-Add – ~$23M of Potential for Value Creation:

Our planned investment of approximately $6.2M in renovations and enhancements is expected to create roughly $23M in value, elevating the property to the Ashland Greene Diamond standard and ensuring a significant return on investment.

(5)? Proven Track Record:

Ashland Greene stands as a pillar of success and expertise in the Dallas-Fort Worth market, embodying unmatched value in its venture. With a focused and strategic approach, they boast substantial achievements:

• the transaction of over 6,900 units demonstrates their market acumen; the successful return of more than $60 million to investors underscores their commitment to profitability;
• an impressive?average annualized return of approximately 28% on exited deals, maintained over an average hold period of 2.8 years, highlights their exceptional performance and
• their significant industry impact is marked by acquisitions totaling $1.2 billion in Dallas/Fort Worth alone.
• Ashland is vertically integrated with in-house construction and property management - leading to an alignment of incentives.

Deal Brochure: Click here

Webinar Link: Click here

Property Video: Click here?

Next Steps: Let's discuss how our McKinney offering aligns with your investment goals, paving the way for a successful partnership in one of Texas's most vibrant markets.

Please send me a DM to get more details about this offering and to join our investor club, or schedule a call with me: https://calendly.com/nishant-sondhi

About Sondhi Capital Group: Sondhi Capital Group, a leading private equity firm, specializes in strategic real estate investments, focusing on the high-demand mid-market rental properties in the Southeastern US, especially in the Sunbelt region.

Our portfolio includes multifamily developments and build-for-rent communities. We emphasize transparency, trust, and integrity, providing our investors with clear insights into our strategies and operations. Our team of highly educated and experienced advisors is committed to aligning with client investment goals and maintaining excellence in service.

https://www.sondhicapitalgroup.com/

Disclaimer: This post does not offer securities or solicit investments. Per the Securities Act of 1933, information is for accredited or financially sophisticated investors only. Always consult with professionals before making financial decisions. Sondhi Capital Group LLC does not provide financial advice or services.