Verandas at City View is a 314-unit gated apartment and townhome community in Benbrook, Texas, 9 miles from downtown Fort Worth.
Courtesy Magma Equities Verandas at City View is a 314-unit gated apartment and townhome community in Benbrook, Texas, 9 miles from downtown Fort Worth.

Multifamily investment firm Magma Equities has acquired two apartment communities with 562 units in Dallas and Fort Worth in separate off-market transactions.

The properties—the 314-unit Verandas at City View in the Fort Worth suburb of Benbrook and the 248-unit Vista Azul in Dallas—were acquired in a joint venture with Viking Partners, a Cincinnati-based private equity real estate investment firm that has been a long-time partner of Magma Equities. The Magma-led joint venture has plans to immediately start a multimillion dollar capital program to improve the properties’ interiors, exteriors, and common areas.

Built in 2002, Verandas at City View is a gated apartment and townhome community with one-, two-, and three-bedroom floor plans in 15 low-rise buildings on a large 14.7-acre site. Amenities include a clubhouse, a swimming pool and a spa, and fitness and business centers.

Built in 1974, Vista Azul is a garden-style community consisting largely of one- and two-bedroom floor plans on an entire city block. Amenities include a clubhouse, a fitness center, and picnic and grilling areas.

Tom Short, Magma Equities
Tom Short, Magma Equities

These two acquisitions mark the first of five that the firm expects to close in the metro by the end of 2021. To support its growing investment activities in the Lone Star State and the Central U.S., Magma Equities, based in Manhattan Beach, California, has established a regional headquarters in Dallas under Tom Short, who has joined the firm as a partner.

“No matter how large or sophisticated you are, real estate remains a local business,” said managing principal Ryan Hall. “The new Dallas office under Tom’s leadership will help us to meet our goal of building a significant portfolio with several thousand units under management in the next 24 months.”

Short has spent his 13-year commercial real estate career in the Dallas-Fort Worth metro, executing on approximately $2.2 billion in transactions. Prior to joining Magma, he founded Arch Investment Group, which partnered with a family office to invest in multifamily and industrial properties across the state.

“While our focus will continue to be on value-add multifamily investments, we will also look at buying Class A communities as well,” Short said. “We will be looking at opportunities between $20 million and $200 million in all major Texas markets with a specific focus on the Dallas-Fort Worth metro in the near term. We are also looking to expand into other high-growth markets in Colorado, Georgia, and Florida while continuing to add to our holdings in North Carolina and Tennessee.”