Multifamily Challenge: Getting Deals on the Market
There’s a dearth of multifamily product on the market and deals are trading before full-fledged marketing campaigns are done, says EDGE Realty Capital Markets principal Mart Martindale (far right, with recent additions to the EDGE team, senior associate Kevin Parrish and VP Wilson Stafford). Investors are eager for deals, making speed-to-market a key ingredient. Mart tells us he’s got several irons in the fire, including the Magnolia at Bishop Arts at 801 N Bishop Ave and at 908 N Bishop Ave, which should be on the market soon.
Magnolia at Bishop Arts just opened a few months ago and is the only Class-A project (developed by Randy Primrose of Magnolia Properties) within walking distance of the funky Bishop Arts neighborhood, Mart tells us. The 39-unit boutique project (which has units on each side of Bishop Avenue) is a new product type in a very niche area, and the investment community is willing to listen to the story of the neighborhood, and understand a different format and unique offering. He’s already seeing a lot of players ready to make these bets.
While investors want quick deals, the market has become accustomed to uncertainty, Mart says. Obstacles like uncertainty about interest rates, oil prices and the global economy don’t seem to torpedo deals. The 386-unit Class-C Willow Pond has a handful of players in the running, even with land-use restrictions, Mart says. The prospects are patient and ready to partner to do whatever it takes to make the deal happen because of the property’s location (adjacent to the former Steakley Chevrolet off East Northwest Highway and Abrams) and potential upside. Willow Pond is in the path of growth between Lake Highlands Town Center and office and multifamily projects around the Chevrolet dealer. Mart says the owner is in the midst of dealing with State land-use restrictions to move a sale forward. Peering into his crystal ball, Mart says he thinks the market will see a lot of redevelopment in the urban areas, as land becomes more scarce.