Today, Fogelman Properties announced the acquisition of The Ovilla, a 288-unit multifamily community in Red Oak, Texas, in the Dallas-Fort Worth metro area, according to a press release shared with Multifamily Dive.
While DFW has weathered a lot of new supply over the past couple of years, the Memphis, Tennessee-based multifamily investment and property management firm determined that only 2% of existing inventory is delivering in the far south suburbs of Dallas over the next 18 months.
“Ellis County provides us with DFW-adjacent fundamentals, like job access and population growth, at a basis that’s still attractive relative to the core areas of Dallas,” Thomas Henry, vice president of investments at Fogelman, told Multifamily Dive in emailed comments. “We also view the TxDOT infrastructure investment along I-35 near the property as a signal of long-term commitment to growth in that area.”
The Ovilla, built in 2023 and 95% occupied, features apartment homes ranging from 600 to 1,351 square feet with rental rates starting at $1,715 per month, according to a press release shared with Multifamily Dive. Fogelman will manage the property and execute a capital improvement plan that includes clubhouse and exterior amenity updates.
Henry said the combination of population and job growth and limited new supply positions Red Oak well. Still, the DFW market is dealing with supply. The market has one of the lowest occupancy rates in the country, according to Yardi Matrix.
With the purchase, Fogelman now owns nine communities and manages 3,012 units across Texas. In the last nine months, Fogelman has made three acquisitions, including The Vineyards in Germantown, Tennessee, and the 300-unit Inkwell Greenhouse in Katy, Texas.
“Fogelman remains active across the Southeast, Midwest and Texas with a continued focus on markets where supply is moderating, and we are seeing fundamentals improving,” Henry said.
The firm continues to look for more acquisitions. “We’re underwriting more deals today than we were a year ago and expect that momentum to continue as more owners decide it’s time to transact rather than wait out the cycle,” Henry said.
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