Construction on the Watermere at McKinney development is progressing as planned with the first units expected to be move-in ready later this year. Construction will continue after the first phase opens and is expected to wrap up during summer 2025. The 221 unit project, being developed by Integrated Real Estate Group, will consist of two and three bedroom floor plans. The project at 3351 Virginia Parkway is expected to cost $48 million.

Amenities include a heated indoor/outdoor pool and hot tub, Pickleball courts, salon and spa, fitness center, a cafe and a pet park. In addition, may of the units have private patios, balconies and yards. The dining hall offers dozens of menu items. Guest suites are available for family and friends.

Headquartered in the Dallas-Fort Worth area, Integrated Real Estate Group has been engaged in property management, development, construction, housing solutions, and senior living lifestyles since 1995. The company has developed more than $1 billion in real estate projects,

The distress rate on apartment loans with CMBS financing has increased 185% year to date, according to CRED iQ. Loans in the multifamily sector began 2024 with a 2.6% distress rate—a composite of the special servicing and delinquency rates—and now stand at 7.4%.  

Although the monthly increase between May and June was a modest three basis points, apartment loans are now vying with those in lodging sector for third place, CRED iQ reported. 

The retail and office sectors are nearly neck-and-neck for the highest distress rates, notching 11.7% and 11.5%, respectively. Both sectors saw modest increases of four bps compared to the previous month.  

Hotels retained third place with an 8.1% distress rate, after logging the best month-over-month improvement of the group, with a 130-bp decline in distress. Industrial and self-storage continued operating at sub-1% in all but one of the past 7 months.    

The overall CRED iQ distress rate added 13 bps in June to 8.62%, nearly identical to May’s increase. The June rate a fourth straight record high. CRED iQ’s special servicing rate remained mostly flat at 8.08% while the CRED iQ delinquency rate gained 48 basis points to 6.28%. 

Fairfield Residential paid $51.8 million for a 380-unit South Nashville apartment complex. The Landmark at Wynton Pointe apartment community, located at 1000 Enclave Circle, was purchased for about $136,289 per unit. The development has a pool, fitness area, clubhouse, barbecue grills and lighted tennis courts. Rents range from $1,100-$1,600 a unit up to 1,133 square feet.

GVA Real Estate was the seller. The Nashville Business Journal reports it’s Fairfield’s fourth purchase of a Nashville apartment this year. GVA has been the seller in all four recent deals between the two.

GVA has undertaken more than ten real estate transactions in the Nashville market since 2019 and has sold several apartment buildings to multiple out-of-town buyers in the past few months.

Fairfield Residential owns and manages residential properties in more than 35 U.S. cities.

Last year, Tampa-based American Landmark Apartments went on a buying spree, picking up 30 assets with about 6,000 units worth $1.7B. This year, it wants to buy up to $2B more.

Courtesy of Joe Lubeck

American Landmark CEO Joe Lubeck

American Landmark now owns about 33,000 units in Florida, Georgia, North Carolina, South Carolina and Texas. The National Multifamily Housing Council ranked it the 44th-largest apartment owner in the country in 2019. By next year, it hopes to own more than 40,000 apartments, it announced this week.

The company is encouraged by growth in the Sun Belt and the ongoing appetite from foreign and domestic investors, it said in a statement. It will seek Class-A-minus and B product in secondary markets in the Southeast.

“Strong population and job growth continues to fuel demand for apartments in metros across the Southeast, and retirees/seniors are also entering the rental market in droves,” CEO Joe Lubeck said in a statement. “While the market has become very competitive and overheated in some areas, our disciplined focus on workforce housing, and unprecedented access to off-market or special situation transactions, gives us a distinct competitive advantage, and will allow us to continue to be highly selective and produce exceptional returns for our investors.”

Lubeck told GlobeSt that he was attracted to cities like Charlotte, Raleigh, Atlanta and Nashville for future acquisitions.

“Jobs, jobs, jobs is our mantra — we go where there’s job growth, which follows population growth,” he said. 

American Landmark said its 2018 Multifamily Fund II raised $462M from institutional and private investors. Its 2019 Multifamily Fund III has a target raise of $500M. So far, that capital was been used to buy a nine-property, 2,578-unit apartment portfolio in December for approximately $400M.