Multifamily investment firm Magma Equities (“Magma”) in two separate off-market transactions has acquired apartment communities in Dallas and Fort Worth representing 562 apartment homes, two of five acquisitions the firm expects to close in the Dallas/Fort Worth MSA by year end. 

 

To support its growing investment activities in Texas and the Central U.S., Magma has also announced that it has established a regional headquarters in Dallas, TX under the direction of Tom Short who has joined the firm as partner. 

 

“No matter how large or sophisticated you are, real estate remains a local business,” said Magma Managing Principal Ryan Hall.   “The new Dallas office under Tom’s leadership will help us to meet our goal of building a significant portfolio with several thousand units under management in the next 24 months,” said Hall. 

 

A graduate of Southern Methodist University, Short has spent his entire 13-year commercial real estate career in the Dallas/Fort Worth Metro, executing on approximately $2.2 billion in transactions.  Prior to joining Magma, Short founded Arch Investment Group, which partnered with a family office to invest in multifamily and industrial real estate throughout Texas. 

 

“While our focus will continue to be on value-add multifamily investments, we will also look at buying Class A communities as well,” said Short.  “We will be looking at opportunities between $20 million and $200 million in all major Texas markets with a specific focus on the Dallas/Fort Worth Metro in the near term. We are also looking to expand into other high growth markets in Colorado, Georgia, and Florida while continuing to add to our holdings in North Carolina and Tennessee.” 

 

Verandas at City View is a gated 314-unit apartment and townhome community located at 7301 Oakmont Boulevard in the Fort Worth suburb of Benbrook, nine miles southeast of downtown Fort Worth.   Built in 2002, the property offers a variety of one,- two- and three-bedroom floor plans housed in 15 low rise residential buildings on a large 14.7-acre site.  Common area amenities include clubhouse, swimming pool and spa, fitness and business centers.  

 

Built in 1974, the 248-unit Vista Azul is located at 2911 Clydedale Drive, 10 miles north of Downtown Dallas.  Encompassing an entire city block, the low-rise garden-style property consists largely of one- and two-bedroom apartment homes, with a clubhouse, fitness center and picnic and grilling areas. 

 

Both properties were acquired in joint venture with long-time partner Cincinnati-based private equity real estate investment firm Viking Partners.  The Magma-led JV will immediately begin a multimillion dollar capital improvement program to improve interiors, exteriors and common areas across the two-property portfolio.  

 

“Texas has long been a target market for us and based on our previous experience with them in North Carolina and Tennessee, we trust in Magma to deliver in Texas risk adjusted yields that meet our return profile,” added Viking Partners Principal Bret Caller.   

 

 

 

Multifamily investment firm Magma Equities (Magma) in partnership with Viking Partners has acquired University Apartments, a 359-unit apartment community located in the Duke submarket of Durham, NC, in an off-market transaction for $42.4 million. 

 

Magma has been one of the most active apartment buyers in the Raleigh-Durham MSA, having acquired 12 properties since entering the market in February 2019. University Apartments is the Los Angeles-based firm’s fifth acquisition in the MSA this year alone and increases its local multifamily portfolio to more than 3,600 units. 

 

“We’ve cultivated strong relationships with brokers and property owners in the market which has enhanced our ability to rapidly expand our footprint in the market over the last two years,” said Managing Principal Ryan Hall. 

 

University Apartments’ studio, one- and two-bedroom apartments are housed in 20 two- and three-story residential building buildings on 12 acres at 1500 Duke University Road. Community amenities include two 24-hour fitness centers, two swimming pools with sundecks, grills and an outdoor fireplace. The location offers easy access to both the Duke and Durham transit lines. Magma plans to initiate a capital improvement plan to upgrade both the unit interiors as well as the community areas.

 

Located just steps from Duke University and Duke University Hospital, the property is less than a half mile from Highway 147, The Triangle Expressway, providing convenient access to Research Triangle Park, the region’s most prolific employment center; as well as Raleigh-Durham International Airport and downtown Durham and Raleigh. University Apartments is approximately 10.3 miles from the recently announced Apple Campus & Engineering Hub, a $1 Billion future development that will create 3,000-plus new jobs.

 

“Over the past two decades, Raleigh/Durham has evolved into a thriving hub for businesses up and down the East Coast, becoming one of the country’s top regions for technology, research and development,” said Magma’s Scott Ogilvie, who led the acquisitions effort along with Hall. “The infusion of new businesses into the area has created a growing need for quality housing which is why we continue to seek out and acquire assets in this market,” added Hall. 

 

 

 

 

Multifamily investment firm Magma Equities (“Magma”) in partnership with Viking Partners has added to its Tennessee portfolio with the acquisition of Greentree Homes Apartments, a 146-unit garden-style community in Knoxville for $15.425 million.    

 

The property, which will be rebranded as The Abigail, benefits from a prime location at 4831 E. Summit Circle in West Knoxville, one of Knoxville’s most affluent neighborhoods.  Located within five miles of Downtown Knoxville and the University of Tennessee, the neighborhood’s elementary, middle and high schools are among the most highly rated in Knox County.    

 

Despite the numerous demand drivers, the eight-acre wooded property has suffered from a lack of institutional-quality ownership and has largely remained unimproved since being constructed in 1974.  This has impacted both rent growth and occupancy, which was 88 percent at closing, according to Magma Equities Founder and Managing partner Ryan Hall.

 

“We will immediately address deferred maintenance issues as well as bring on Elmington Property Management, which manages all of our properties in Tennessee, to improve property-level operations,” said Hall, whose Los Angeles-based investment firm owns more than 700 units in Tennessee.  “We will then embark on a thoughtful renovation program in the Fall.”

 

When completed, Hall believes The Abigail will be well positioned as a high quality, yet more affordable alternative to the higher-priced rental product in the West Knoxville submarket. 

Dennis Harris of The Kirkland Companies represented both parties to the transaction.

 

 

 

JLL Capital Markets announced today it closed a $6.2 million sale of 51 existing multi-housing units in the Richmond Hills multi-housing community located at 2251 Charles Dr. in Raleigh, North Carolina. 

JLL represented the seller, EYC Companies, LLC, to complete the sale to the buyer, Magma Equities. 

The community will undergo a renovation with updated countertops and kitchen cabinets, pool revitalization, and exterior renovations in the next year. Sitting on 5.19 acres, the existing 51-unit apartment property is also entitled for up to 330 units of multi-housing for a potential future redevelopment. 

The infill property is also just a half a mile from I-440/Raleigh Beltline and 3.5 miles from I-40, allowing direct access to key employment and entertainment hubs like North Hills and Downtown Raleigh. Additionally, the property is located across the street from Crabtree Valley Mall, which offers over 150 national retail options. 

The JLL Capital Markets team representing the seller was led by Director Sarah Godwin. 

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge deliver best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement, or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

 

Multifamily investment firm Magma Equities has acquired Charleston Hall Apartments, a 194-unit garden-style community in Smyrna, TN (Nashville MSA) in an off-market transaction valued at $27 million.

 

Charleston Hall increases Magma Equities’ holdings in the Nashville MSA to 557 units. Magma Equities, a vertically integrated real estate organization that focuses on repositioning Class B apartment communities throughout the U.S., entered the Nashville market in 2018 with the acquisition of a two-property, 363-unit portfolio.  Magma Equities currently manages a portfolio of multifamily assets located in Washington, California, Arizona, Texas, Tennessee and North Carolina. 

 

Charleston Hall is located at 351 Sam Ridley Parkway E, in the town of Smyrna, 20 miles south of Downtown Nashville. Job growth, fueled by its largest employer, the Nissan Manufacturing Assembly Plant with 8,000 workers, is expected to increase by nearly 50 percent over the next 10 years1.  Located two miles from Charleston Hall, the six million-square-foot plant is one of the top producing facilities in the auto industry and has the capacity to produce an industry best 640,000 automobiles per year, according to the automaker.   This combined with its proximity to Nashville, low cost-of-living, great school system and small city feel, has made Smyrna one of the fastest growing cities in the region, with a population growth of more than 25% over the past 10 years. This has created tremendous demand for quality housing in Smyrna, where much of the inventory was built before 1980, according to Magma Equities Principal Ryan Hall.

 

“Our goal is to create a property that will be on par with the competitive set, but at a price point that will entice potential renters with a value proposition unavailable in the market,” said Hall.

 

Charleston Hall is a low-density community with a mix of one-, two- and three-bedroom apartments and townhomes in 22 two-story residential buildings on an 8.9-acre lot.  Common area amenities include a swimming pool; basketball, tennis and volleyball courts; children’s playground and a leasing center.  The seller is a local investor which has owned the property since it was developed in 1986.  A second phase was completed in 1996.  

 

In addition to bringing in professional management to improve operations, Magma Equities plans a multimillion-dollar capital improvement program that will enhance the property exterior, grounds and maximize the desirability of the interior units to better appeal to the submarket demographics.  Magma Equities will immediately begin common area improvements that will include an upgrade to the pool area as well as new landscaping designed to create a park like setting with built-in BBQs and picnic tables. Renovations to apartment interiors, which will take place as units roll, will include new countertops, appliances, cabinet fronts, flooring, fixtures and lighting. 

 

 

Kirkland Companies  represented the  seller in the off-market transaction.  

 

Magma Equities has engaged Nashville-based Elmington Property Management, to manage the property. 

 

 

 

1     https://www.bestplaces.net/economy/city/georgia/smyrna

Magma Equities has acquired Independence Park Apartments, a 312-unit garden-style community in Durham, NC for $50 million.  Independence Park is Magma’s fifth apartment investment in the Tar Heel State in the past 14 months.

 

Magma tied up the asset and was able to complete its due diligence and secure attractive agency financing prior to the onset of the Covid-19 pandemic.  Even as the economic climate shifted dramatically, Magma maintained the agreed-upon purchase price with the seller, according to Magma CFO Michael Wagar.  

 

“As active buyers in the region, we were able to source the opportunity off-market and avoid the competitive bidding process.  As a result, we were very comfortable with the price as negotiated,” said Wagar.   “This was a very good deal for us in January and a very good deal for us now.  Despite the current challenges, we expect it to perform well over the long-term.”

 

Built in 2009, Independence Park features a mix of one-, two- and three-bedroom units housed in 13, three-story residential buildings on a 23-acre site at 215 William Penn Plaza.  Community amenities include swimming pool, fitness center, business center, clubhouse, 24-seat multimedia theater, tennis court, sand volleyball court, basketball court, playground and dog park.    

 

Independence Park benefits from numerous demand drivers including its proximity to Downtown Durham and the Research Triangle Park, two of the largest employment centers in the region.  It is also located two blocks from Duke Regional Hospital and directly adjacent to Voyager Academy, a K-12 charter school that ranks among the top schools in the region. 

 

“The Research Triangle is highly desirable employment center that attracts recent graduates from highly regarded surrounding universities to its top employers,” added Magma Principal Robert Murray.    “In the midst of COVID-19, we stress tested the Independence acquisition differently than when we first approached it and were able to work with all parties involved to get the transaction done.”  

 

 

Magma will suspend renovation plans and immediately begin outreach to offer any assistance it can to keep tenants housed and “heads on beds,” according to Wagar.  Independence Park was 96 percent occupied at closing.

 

Dennis Harris at The Kirkland Company in the firm’s North Carolina office represented the seller.  Jesse Nichols, Princial in the Los Angeles office of Polsinelli was Magma’s legal representative.  

 

Abe Spira and Justin Hechler at Greystone secured the debt with Freddie Mac through its floating rate loan program. 

 

 

 

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