Garland is a very mature sub-market located in Northeast Dallas just west of Lake Ray Hubbard. It benefits from proximity to East-West highways of 635 and George Bush Turnpike connecting it to the rest of the DFW MSA. Highway 78 cuts through the middle of the city connecting 635 and George Bush. Most of the newer development in the city is on north side of the city near George Bush with the largest retail center called Firewheel Town Center located at the Northeast corner of Hwy 78 and George Bush. The key demographics of the city per the 2010 census were: Population of over 225K, Median income of $52K, and a 38% Hispanic population. There are approximately 19K multifamily units in Garland. Top employers in Garland include: Raytheon, Walmart, and Navistar. Texas Instruments is in close proximity just west of Garland in Richardson.
Most of the apartment inventory in this sub-market was built in the 60’s and 70’s, thus the sub-market has a lot of value add opportunities. Investors need to be wary of over improving their properties in this market as the renter pool decreases as you raise rents significantly on top of recent rent gains over the past few years. Class C 1 bedroom rents in this sub-market range from $550-$650/month and 2 bedroom rents average $700-$800/month. Class C properties in this sub-market are trading in the $35K-$45K range (7-7.5% cap rates).
Here is a sample of the market activity in the area:
Kingsley Crossing Apartments- 1900 West Kingsley, Garland, TX 75041; 122 units built in 1966; Listed at $4.1M ($34K/unit). Rents range from $550-$700/month.
Colonial and Town Central- 515 Flook Street and 104 South 11th Street, Garland, TX 75040; 55 units built in 1983 and 1977. Estimated price of $2.3M ($42K/unit). Rents range from $550-$750/month.
Gardens on Walnut- 4209 West Walnut Street, Garland, TX 75042; 160 units built in 1966; List price of $6.6M ($42K/unit). Rents range from $600-$775 depending on upgraded level and size of unit.
Very nice video put together by the listing brokerage:
Bradfield Creek Townhomes- 832 Courtenay, Garland, TX 75040; 26 units built in 1984; List price of $2.1M ($81K/unit). Rents on these rehabbed units averaging over $1,150/month thus the higher price per unit. Sold in July 2015.
Investors over the past couple of years in this submarket are getting rewarded with higher rents and thus higher valuations. We are assisting long-term property owners with refinancing their recourse bank loans into agency non-recourse debt in this submarket.
If you are interested in purchasing or refinancing a property in the DFW area, please reach out to me at: firstname.lastname@example.org or 214-300-5035.