Altus Equity Group has acquired six garden-style apartment communities, totaling 1,225 units, in the Midland-Odessa region of Texas. 

The acquisition, which occurred in a strategic partnership with Wellings Capital, closed in March and was announced in a news release on Tuesday.

The Odessa Multifamily Portfolio, previously institutionally managed, boasts a 92% occupancy rate and a forecasted year-one yield exceeding 10%.

"With high occupancy, assumable loans in place and proven demand in the market, this portfolio is positioned to allow us to drive substantial value through disciplined management and asset enhancement, while providing critical workforce housing to the community,” Andy Eicher, senior vice president of investments at Altus Equity Group said in the release.

The Dallas office of Marcus & Millichap IPA, CBRE’s debt team and the law firms of Phillips Murrah and Beyers Costin Simon facilitated the deal.

Altus, which owns multifamily and industrial properties, focuses on acquiring underperforming assets in economically resilient regions with strong value-add potential. While the Odessa market is known for booms and busts in the oil market, it also offers connectivity to major Texas cities. 

“Transportation and distribution industries will continue to grow as Midland–Odessa remains an important midway point between Dallas and El Paso and as the needs of the energy industry grow,” the Federal Reserve Bank of Dallas said in a report on the region.

The area posted 2.8% population growth from 2023 to 2024, placing it among the country’s 10 fastest-growing markets, according to the Census Bureau.

"We're entering this investment with a strong margin of safety and clear operational upside," Eicher said in the news release.

Click here to sign up to receive multifamily and apartment news like this article in your inbox every weekday.