The Jacobson Company acquires brand new 217-unit multi-family community in suburban Fort Worth, Texas for $57 million
The Jacobson company, a leading private real estate investment and management firm, has successfully completed the off-market acquisition of Atlantica in Burleson, a new 217-unit Class A multi-family community in the Fort Worth submarket of Burleson, in Texas.
“With the unique opportunity to acquire this exceptional asset on an attractive basis in a market that is currently 98% occupied, we will be able to unlock tremendous value potential,” said Larry Jacobson, President and Chief Executive Officer. of The Jacobson Company. “Because the property welcomed residents while it was still under construction in November 2021, many current occupants signed leases before the common areas were completed. As such, we believe that current in-place rents do not reflect the maximum potential income from the property. In addition to rising rents, Atlantica in Burleson is poised to take advantage of incredibly strong multifamily market fundamentals and a favorable supply imbalance.
Jacobson notes that a new study commissioned by the National Multifamily Housing Council and the National Apartment Association finds that the United States needs to build 4.3 million new apartments by 2035 to meet demand, deficit and growth. affordability. Specifically, the Dallas-Fort Worth (DFW) Metroplex is to build 19,000 new apartments every year to meet current demand.
“DFW has steadily grown into one of the most impressive economic centers in the United States,” says Jacobson. “Traditionally known for being centered around the oil and gas industry, DFW has become an incredibly diverse employment hub as the metroplex continues to attract corporate relocations and expansions from major technology employers. , finance, engineering, manufacturing and aerospace. With a business-friendly climate, low cost of living, excellent education system, and lifestyle amenities, DFW continues to grow at a record pace, leading all US MSAs in total population growth from 2010 to 2020 . »
Jacobson adds that this increase in population, coupled with a historically low inventory pipeline, has resulted in rental growth of 14% in DFW in 2021. As the DFW Metroplex continues this rapid growth, residents will eventually be excluded from major urban markets such as Fort Worth. Burleson has been a direct benefactor of this trend as the city has experienced population growth of 39% from 2010 to 2020. Despite this substantial population growth, there has been very little multi-family development to meet this increased demand, and according to CoStar , there are only 505 total units under construction in Burleson.
“The Jacobson Company has successfully executed a strategy of acquiring suburban assets close to expensive city centers for generations and believes that Atlantica in Burleson offers investors an exceptional opportunity to take advantage of this approach,” continues Jacobson. “Located immediately south of Fort Worth, Burleson offers tenants rents 26% below downtown Fort Worth rents, coupled with a safe home environment, a strong public school system and an inviting sense of community. The town exudes quaint, small-town Texas charm, while also being a 25-minute drive to downtown Fort Worth, offering residents the best of both worlds with suburban and city living.
Atlantica in Burleson was developed by Sovereign Properties, an experienced multi-family developer specializing in Class A products throughout Texas. Atlantica is a garden-style community comprised of five three-story residential buildings, all serviced by an elevator. The property offers tenants large open floor plans, modern stainless steel appliances, sleek quartz countertops, sleek wood floors in common areas, contemporary lighting, washer/dryer in each unit, private terraces or balconies and dressing rooms.
Community facilities include a modern 24-hour fitness studio, outdoor barbecue and game stations, resort-inspired pool with sundeck, dog park, pet spa, cyber- lounge, valet parking, independent garages and elevator access in each building.
The acquisition was negotiated by Drew Kile, Joey Tumminello, Michael Ware, Taylor Hill and Jeffrey Kindorf of Institutional Property Advisors (IPA). Funding was arranged by Brian Eisendrath and Cameron Chalfant of IPA Capital Markets.
Atlantica in Burleson is located at 285 SE John Jones Drive in Burleson, Texas.