MEAG and CBRE Investment Management have acquired a recently completed community in Dallas from an undisclosed seller. MEAG acquired The property, Laurel Preston Hollow, on behalf of German insurance company Munich Re Group as its asset manager.
The Class A community offers 159 units in one-, two- and three-bedroom floorplans ranging from 1,085 to 2,310 square feet. The units feature 10-foot ceilings, wine refrigerators and in-unit washers and dryers. The midrise community’s amenities include a pool, clubhouse, fitness center, dog park, business center, courtyard spaces, electric vehicle charging stations and 268 reserved garage parking spaces.
Located at 8600 Preston Road, in Dallas’ Preston Hollow neighborhood, the community is adjacent to a three million-square-foot mixed-use development called The Plaza at Preston Center that has offices, retail and restaurants. Residents also have easy access to Dallas’ North Tollway and Interstate 75. Dallas’ central business district is within a ten-minute drive.
From Durham to Dallas
Ben Green, managing director of residential transactions for CBRE Investment Management said in prepared remarks that the acquisition of Laurel Preston Hollow follows the firm’s strategy of investing in “difficult-to-replicate” residential assets in growing infill markets with strong market indicators.
According to Collier’s 2023 first quarter report for the Dallas-Fort Worth multifamily market, the region has been seeing steady job growth and an influx of new residents. The market’s occupancy rate remains tight at 93.6 percent in this year’s first quarter, but is down from last year’s 97.3 percent. Dallas-Fort Worth is still seeing plenty of construction with more than 74,000 units under construction compared to more than 51,000 units during the first quarter of 2022. The market’s average rental rate has also gone up to $1,531, staying on par with last quarter but rising from last year’s first quarter rate of $1,435.
Green told MHN that the firm will remain focused on investing in attractive, risk-adjusted residential opportunities throughout the U.S. CBRE Investment Management worked with MEAG to acquire a 247-unit community in Durham, N.C. earlier this year. The firm is also investing abroad with recent acquisitions including a build-to-rent project in Stockholm and a five-community portfolio in Germany.
