Chicago’s Waterton loves Texas’ pinched housing supply

Windy City investor just bought its 19th multifamily property in the Lone Star State

Waterton VP Jeremy Stern and 8025 Ohio Drive in Plano (Waterton, Apartments.com, Getty)
Waterton VP Jeremy Stern and 8025 Ohio Drive in Plano (Waterton, Apartments.com, Getty)

Waterton, a Chicago-based real estate firm, has scooped up yet another Texas rental community.

Mission Gate Apartments is located on 8025 Ohio Drive near Preston Road. It’s right below Stonebriar Mall at The Bridges and has several major employment centers nearby in West Plano and Frisco.

Nationwide, Waterton owns $9.3 billion in real estate assets, according to the Dallas Morning News. Despite being based in the Windy City, Waterton only has 10 properties in Illinois compared to its now 19 in Texas.

Though Waterton invests in rental properties across the value spectrum, its latest acquisition falls in the lower-mid tier, but the firm plans upgrades.

Waterton VP Jeremy Stern cited Mission Gate’s location and “value add potential” as factors that drew the firm to the property. “With a number of the residences in need of updates, we believe our signature value-add program will provide area residents with an attractive rental option in a submarket where many are priced out of home ownership,” he said.

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Indeed, the most of the negative online reviews from residents of Mission Gate are regarding the building’s poor maintenance, negligent management and upkeep, while the positive feedback frequently praises the area.

A one-star review from resident Pablo Eckardt from three months ago begins, “Would be 3 star – but the management of these properties leaves much to be desired.” Eckhardt says his rent went from “$1300 to $1900 in two years.”

However, the area surrounding Mission Gate has seen a steep slowdown in new apartment additions.

“The supply pipeline has significantly slowed,” says Stern, “with less than two percent of inventory under construction within five miles of Mission Gate and nothing in the pipeline within one mile.”

— Maddy Sperling