A commercial real estate agency in Dallas has secured new ownership for three apartment properties in Killeen.
Paul Yazbeck, managing partner of The Multifamily Group, said a deal has been closed for a three-asset, 177-unit portfolio consisting of Bonanza, Eagle Hollow and The Colony apartments.
The company did not disclose the dollar amount of the sale, but the values of each property, according to the Bell County Appraisal District are as follows:
Bonanza, 2305 Botanical Drive: $99,543
Eagle Hollow, 2300 Andover Drive: $120,994
The Colony, 2214 Andover Drive: $766,306
The unnamed new owner is planning on renovating the unit interiors throughout the complex. The deal is the new owner’s second acquisition in Killeen over the past 12 months, Yazbeck said.
“The Killeen apartment market has experienced 2 percent annual rent growth over the past five years and minimal new development, which has contributed to high occupancy for apartment buildings,” Yazbeck said in a written statement.
While multiple other brokerage firms attempted to sell this portfolio prior to The Multifamily Group, none were successful until the Dallas-based team brought a buyer to close on the deal in September 2018, Yazbeck said.
“More and more investors that used to focus on larger markets in Texas are getting more comfortable with investing in the Killeen MSA,” Yazbeck said, who said he has sold seven deals in Killeen in the last 15 months. “It seems capital is continuing to chase yield due to major-market cap-rate compression. This has required investors to broaden their market focus.”