Magma Equities (“Magma”), in its first joint venture with Walker & Dunlop Investment Partners (“WDIP”), has acquired a two-property, 820-unit suburban value-add multifamily portfolio in Texas from Moody National Companies in an off-market transaction. 

The purchase of the 580-unit Village at Bellaire in Houston and the 240-unit Lost Spurs Ranch in the Fort Worth submarket of Roanoke, brings the firm’s Texas assets under management to 3,440 units. Since establishing a regional headquarters in Dallas in November 2021 to support its growing investment activities in Texas, the Southern California-based multifamily investment company has invested approximately $667 million in assets located in Dallas, Houston, San Antonio, Fort Worth, and Austin.      

“Our focus on economic fundamentals in selecting target markets has led us to heavily invest in Texas, home to many of the nation’s top-performing and historically recession-resilient metros.  Both properties in the Moody portfolio are located in high-demand submarkets and benefit from numerous demand drivers including strong corporate migration, attractive amenity bases, excellent school systems, and proximity to the major employment centers within their respective MSAs,” said Magma’s Director of Acquisitions Scott Ogilvie.  “The state’s economic diversity, business-friendly environment, and relative affordability compared to other major markets around the country make Texas an attractive place to live and work, which bodes well for multifamily investment, even during economic headwinds.” 

The Magma-led joint venture plans to create added value through physical improvements and enhanced management operations.  Taking advantage of its in-going cost basis and the economy of scale from the operation of its large regional portfolio, Magma plans to significantly improve the living environment for its residents while still keeping rents affordable relative to newer product in the area, according to Ogilvie. 

Magma’s capital improvement plans call for a modernized interior renovation program and exterior upgrades to meet the market's demand for quality and maximize the market rents that can be achieved while staying below the competitive set for renovated product.

Built in 1990, Village at Bellaire consists of 580 one- and two-bedroom apartment homes housed in 25 three-story residential buildings on a 14.37-acre site. Community amenities include a clubhouse, two swimming pools, a hot tub and spa, a 24-hour state-of-the-art fitness center, a business center, and grilling and picnic areas. Located inside the 610 loop at 5454 Newcastle St. in southwest Houston, Village at Bellaire was 96% occupied at closing.

Completed in 2001, the 240-unit Lost Spurs Ranch comprises one-, two- and three-bedroom apartment homes across 12 three-story residential buildings on a 13.52-acre site. Community amenities include an oversized swimming pool, a 24-hour premium fitness center and half basketball court, a media room and Wi-Fi café, and a new playground. Located 17 miles north of downtown Fort Worth at 13450 Alta Vista Rd. in Roanoke, Lost Spurs Ranch was 99% occupied at the time of sale.

“Economic, demographic and market factors all put Texas multifamily firmly in the national investment limelight,” said WDIP President Mitchell Resnick. “We are pleased to seal this joint venture deal with Magma on such well-located assets in the Houston and Dallas-Fort Worth MSAs. This project has all the advantages along with tremendous additional upside potential.”

Manhattan Beach, CA-based Magma Equities (www.magmaequities.com) is a diversified real estate organization focused on re-positioning Class A & B apartment communities throughout the country. Magma strives to maximize returns for investors while providing residents with homes that are environmentally friendly, efficient, and state-of-the-art. Investment decisions are based on Magma's successful experience in the past, and more importantly, vision for the future.