Brian O’Boyle

Recently, the Dallas-Fort Worth market has been seeing a vast increase in foreign capital. Chinese, Middle Eastern, Canadian and Israeli investors have been especially active.

Many apartment properties selling after two or three years of ownership are yielding significant returns for investors.

Dallas-Fort Worth job growth continues to be strong, and there doesn’t appear to be a stall on the horizon. Industry researchers predict that the North Texas multifamily market will continue to flourish through the end of 2016.

Investment capital continues to pour into the apartment sector. Even deals with unattractive debt and significant yield maintenance/defeasance are drawing a big crowd. At the same time, North Texas leads the nation in multifamily construction, with new products securing record rents.

Multifamily interest continues to remain strong; the demand for deals appears to be at peak levels. We are seeing the return of “pre-sale” transactions—a trend that we haven’t experienced in years. Buyers are also focusing on suburban deals, another trend that is gaining momentum as cap rates on infill locations fall below the 5 percent mark.