Magma Equities (Magma), in a joint venture with funds managed by Franklin Templeton, has acquired Palencia Apartment Homes, a 281-unit apartment community in north Dallas, its fourth multifamily investment in the Dallas/Ft. Worth metro since opening a regional headquarters here late last year.
Palencia Apartment Homes’ studio, one- and two-bedroom apartment homes are housed in nine three-story residential buildings on a 9.61-acre site. Common area amenities include two swimming pools, a clubhouse, fitness center, business center, and picnic and grilling area.
The Magma led joint venture plans to create value through improved management operations and physical improvements to approximately half the units that have not been significantly upgraded since the project was constructed in 1996. Improvements will include the installation of stone countertops, stainless steel appliances (as needed), subway tile backsplashes, new cabinet fronts, modern lighting packages, and washer & dryers.
The property is located at 17817 Coit Road in Plano West/North Dallas, one of Dallas-Fort Worth’s most rapidly growing submarkets. The property benefits from numerous demand drivers including the area’s highly ranked Plano Independent School District, upscale shopping, abundant dining and numerous outdoor recreational amenities. Located just south of the George Bush Turnpike and equidistant between I-75 and Dallas North Tollway, Palencia Apartment Homes affords residents access to many of the metroplex’s major employment hubs, including Downtown Dallas, Toyota Headquarters, Telecom Corridor, Legacy West, The Platinum Corridor, International Business Park and FedEx Corporate Campus. It is also situated on the DART/ UTD bus line, close to University of Texas at Dallas and the new Texas A&M Agricultural Campus.
With its roots in California and now with an office in Dallas, Magma continues to grow its multifamily portfolio, particularly throughout the Southwest and Southeast United States, focusing on both Class A and value-add Class B garden-style communities ranging in size from 150 to 400 units. Since mid-2021, the firm has opened new markets in Dallas, Charlotte, and Knoxville, Tenn., acquiring nearly $300 million in assets totaling 1,500+ units with an additional 2,000+ units closing in the near future.
“In addition to a growth strategy that includes a wealth of experience in this asset class and a sophisticated investor base, our new Dallas office has allowed us to become nimbler and more responsive locally,” said Magma Partner Tom Short who heads the Dallas office. “As a result, we have a robust pipeline of deals in Texas expected to close within the next few months that will more than double our holdings in the state.”
“Palencia represents what Franklin Templeton is looking to achieve with our strategy of buying high quality properties in partnerships with best-in-class operators like Magma,” said Tyler Brown, Vice President – Private Real Estate at Franklin Templeton.