June 2019 Founders Grove Capital Newsletter
Founders Grove Capital has identified MacArthur Place for acquisition. The asset is a 548-unit property located in the highly desirable infill residential neighborhood of Irving-Las Colinas (Dallas, TX). The property is centrally located and provides unparalleled access to some of the major employment centers throughout DFW. We are currently fully subscribed for this investment and expect to close in mid-June.
Founders Grove Capital is focused on acquiring the best, most promising multifamily investment opportunities in Dallas-Fort Worth. The demand for multifamily investments in DFW is as competitive as it’s ever been and rightly so, thanks to tremendous population growth and new job creation. We will continue to seek out the very best opportunities leveraging our institutional relationships with owners and brokers.
Hot markets: Investors say L.A. and D-FW will be the places to buy property in 2019
By Steve Brown, Dallas Morning NewsSteve Brown, Real Estate Editor
Dallas-Fort Worth is again near the top of a shopping list for commercial property investors — behind only Los Angeles in a new survey.
For the third year in a row, commercial real estate firm CBRE ranked D-FW second nationally in its survey of property investors. Houston also made the top 10.
Investors said industrial and warehouse buildings and apartments were their most targeted properties for 2019.
“We are seeing unprecedented investor interest for industrial and logistics properties in Dallas-Fort Worth coming not only from U.S. investors but also global capital from Asia, primarily Singapore, Europe and the Middle East,” Randy Baird, CBRE executive vice president of Industrial & Logistics, said in the report. “D-FW is capturing the interest of all forms of capital because we are at a central point in the U.S. supply chain, we have a pro-business environment with a low cost of doing business, and we have nation-leading population growth.
“Investors are attracted not only by the current market fundamentals, which are stronger than ever, but by the long-term view that D-FW and Texas as a whole will continue to outpace the country in population and job growth, translating to long-term asset appreciation.”
Only 1 in 10 of the investors CBRE polled said they planned to acquire office buildings this year. And only 9 percent said they were shopping for retail properties.
While 98 percent of the real estate industry execs CBRE surveyed said they planned to make property acquisitions this year, more investors indicated they would be more cautious in their buys.
“Pricing is at or near the previous peak for most asset types in prime locations, so investors are seeking yield in secondary markets and alternative asset types,” said Chris Ludeman, Global President of Capital Markets for CBRE.
CBRE surveyed investors in November and December for the annual report. After Los Angeles and D-FW, the real estate markets that investors are most hot on are Washington, D.C., San Francisco, Seattle, Denver and Atlanta. When asked to list their top concerns for the real estate market this year, investors most often mentioned a global economic shock, rising interest rates and a property price bubble.
CBRE’s annual investor poll is just the latest industry snapshot in which D-FW won high marks. Last fall, the Urban Land Institute and PriceWaterhouse Coopers identified D-FW as the top market for 2019 real estate investment and development activity.