Mature Multifamily Market Lures New Business
On the heels of two Q3 DFW-area multifamily acquisitions, Atlanta-based Cortland Partners likes the economic mix of the major Texas markets so much that the firm set up a regional office (which opened on Friday under Nick Wilhelmson's leadership) in Dallas. Cortland chief investment officer Mike Altman tells us that Dallas was a good choice because there's a good balance of new supply and existing product. Plus, it's a mature market that's often proved to be an investors' market. There's a bit more liquidity in the major Texas markets over smaller tertiary markets throughout the Sunbelt, he says. Cortland owns 12 properties in Texas with half in Dallas and half in Houston.
Nick (far left with Cortland Partners CEO Steven DeFrancis, far right) says Cortland closed nearly $300M in Q3 acquisitions including the 304-unit Bristol Oaks in Dallas, the 240-unit Avington Park at Fossil Creek in Fort Worth, and the 312-unit Vizcaya in Houston. The firm was initially formed as an apartment developer, but began aggressively acquiring properties after the Great Recession slammed the brakes on new multifamily construction. The firm has grown to more than 16,000 units. Cortland focuses on acquiring at Class-B and moving it toward Class-A, Nick tells us. He calls the focus opportunistic, sometimes value add, and sometimes just taking over distressed partnerships. (Mickey Mouse refused to comment despite repeated calls to his office.)