#United States #Dallas-Fort Worth #37th Parallel #Woodbridge Villas #Sachse

37th Parallel Properties Expands Its Dallas-Fort Worth Reach

In a strategic move to broaden its footprint in the highly sought-after Dallas-Fort Worth area, 37th Parallel Properties, a distinguished multifamily real estate investment firm, has recently announced its off-market acquisition of Woodbridge Villas, a community comprising 222 units located in Sachse, Texas. Built in 2002, Woodbridge Villas marks a vital addition to the firm’s ever-growing portfolio, which emphasizes high-quality investments across the Southern and Southeastern United States.

A Smart Investment Choice

Dan Chamberlain, Managing Partner at 37th Parallel, expressed confidence in this acquisition, stating, "Woodbridge Villas embodies the type of asset and submarket we continuously seek. Sachse is an affluent area characterized by a median household income nearing $117,000, a reputation for top-rated schools, and a crime rate approximately half of the Texas average. These features contribute to a long-term, family-oriented demand for housing in the region."

The community rests on 10.5 acres and features a mixture of one-, two-, and three-bedroom residences with an average size of 875 square feet. Residents will enjoy various amenities that enhance their living experience, including nine-foot ceilings, private patios and balconies, attached garages, a resort-style swimming pool, a fully-equipped fitness center, and designated pet areas, further underlining the attractive lifestyle offered at Woodbridge Villas.

Supply and Demand Dynamics

Interestingly, the Sachse submarket presents a unique opportunity for stability in occupancy and rental pricing. With virtually no new projects on the horizon—only one currently under construction and none proposed within a seven-mile radius—the factors leading to potential long-term rent growth are robust. Constrained land supply, proximity to established single-family neighborhoods, and local sentiment against density will continue to support steady demand for rental units in this demographic.

Darci Poole, Transaction Manager, indicated that sourcing the property through an off-market strategy enabled them to secure it at a price below current appraisals and replacement costs. This prudent financial maneuvering speaks volumes about their conservative yet effective investment strategy, ensuring a solid investment return despite economic fluctuations.

Financing and Management

This acquisition is backed by low-leverage financing arranged through Freddie Mac, managed by Cutt Ableson and Patrick Hickey at Berkadia. The financing structure, which features a fixed rate over the entire term with an interest-only period, aims to enhance immediate cash flow while limiting refinancing risks, thus creating a safety net amid various interest rate scenarios.

Woodbridge Villas will receive on-site management from RPM Living, recognized as one of the leading property management companies in the U.S., ensuring a high standard of service is maintained for residents.

Looking Forward

This acquisition represents a key investment from the firm's second fund, 37P – Fund II, which mirrors the successful strategies of its predecessor, Fund I. Aimed at value-add and core-plus multifamily properties in dynamic markets, Fund II now includes diversified investments across prominent cities, such as Charlotte, Austin, Atlanta, and Dallas. Chad Doty, another Managing Partner at 37th Parallel, stresses the importance of disciplined capital management and informed market selection in today’s investment climate, affirming that "Woodbridge Villas illustrates our commitment to acquiring high-quality assets in vibrant submarkets.”

As 37th Parallel Properties continues to expand its influence in the multifamily sector, the acquisition of Woodbridge Villas signifies not only a strategic financial investment but also a commitment to providing high-quality housing in areas demonstrating robust demand. With the firm’s track record of success and expanding influence, investors can look forward to beneficial returns and strengthened assets in the competitive real estate market.

About 37th Parallel Properties

Founded in 2008 and headquartered in Richmond, Virginia, 37th Parallel Properties has solidified its reputation in the multifamily investment landscape. With a focus on owning and managing institutional-quality communities, the firm has successfully completed transactions valued at over $1.2 billion, maintaining a 100% profitability record for its esteemed network of high-net-worth and institutional investors. For more information, visit 37th Parallel Properties.