August 15, 2019
Brant Brown, COO and CFO of Westmount Realty Capital LLC in Dallas, is one of the speakers at today’s Connect Texas Multifamily Conference. He recently answered questions put to him by Connect Media concerning Westmount’s take on the Texas multifamily market, and how the sector looks moving into 2020.
Q: What kinds of multifamily projects is Westmount currently looking at investing in, and why?
A: We are actively looking for value-add and opportunistic multifamily investments throughout Texas and the Southwest. Specifically, Class C+ to Class A multifamily properties in locations with a strong economy and steady job growth. Over the past 30 years, we have seen success with this type of product, and have been able to increase the value of these properties through interior and exterior upgrades, amenity offerings and improved on-site management. We have grown our multifamily portfolio by 1,600 units over the past two years, but recently, these deals have been tougher to find in certain Texas markets. The Dallas and Houston markets are getting increasingly competitive, while the San Antonio market still seems to be flying under the radar a bit. We are having a good 2019 to date, having closed three transactions and are under contract on a fourth. We would love to carry this momentum through the end of the year and finish out with 6-8 transactions.
Q: How does Texas rank when it comes to multifamily investments?
A: Texas is a strong market for value-add multifamily investments. While Westmount is active nationally, especially with the office and industrial sides of our business, our multifamily acquisitions team is largely focused on Texas. Currently, all of our multifamily properties are in the North Texas, Houston and San Antonio regions. The strongest value-add investment opportunities are in areas with a robust job market and a stable economy. Currently, we see these markets as being part of the “Texas Triangle,” specifically North Texas, Houston and San Antonio.
Q: What will happen to Texas multifamily for the remainder of the year, and into 2020?
A: The expectation is that we will still see plenty of opportunities come to market for the remainder of 2019. However, with market rent growth rates slowing, I believe we may see a widening gap in seller and buyer pricing expectations, and that will continue into 2020. And while interest rates remain low, the Agencies are becoming much more selective in which deals they are willing to lend on and with which Sponsors. This will certainly have an impact on the landscape of the market through the remainder of 2019.
You can still attend the Connect Texas Multifamily event today! For information, click here.
For comments, questions or concerns, please contact Amy Sorter
Tags: Apartments & Multifamily