At a glance
- Multifamily permitting across Texas's five major metros is down more than half from its 2023 peak, while Dallas-Fort Worth continues to absorb a significant pipeline of apartments under construction, and together those facts form the underwrite for W Properties' timing.
- If the falloff in new permits translates into fewer completions by the time the Melissa project comes to market, the early 2029 leasing season could open into a market that has already worked off much of the supply currently pressuring rents.
- The coverage leaves open how much W Properties paid for the roughly 12 acres, who is funding construction, and whether entitlements or permits are already in hand—details that would sharpen the read on the developer's confidence.
W Properties has put a 252-unit garden-style apartment community on its near-term drawing board for Melissa, Texas, directly beside Everbloom, the 343-unit build-to-rent development the company already has in the town. Connect CRE first reported the plan, and the schedule is the strategy: Andrew Welker, speaking in that report for W Properties, said the firm would not have started a garden-style project in today's North Texas conditions, where the product is still coping with elevated supply and concessions, so the company expects to go vertical in mid-2027 and open for leasing in early 2029.
Multifamily permitting across Texas's five major metros is down more than half from its 2023 peak, while Dallas-Fort Worth continues to absorb a significant pipeline of apartments under construction, and together those facts form the underwrite for W Properties' timing. If the falloff in new permits translates into fewer completions by the time the Melissa project comes to market, the early 2029 leasing season could open into a market that has already worked off much of the supply currently pressuring rents.
That is a counter-cyclical call, and it sits comfortably with what this publication has argued about apartment capital: small and mid-sized deals are repricing on current cash flow, and the buyers who accept that reset set the next comps. W Properties is accepting the reset before its building even breaks ground, betting that waiting two years beats going vertical into the current concessions, and it is also a home-field expansion, adding garden-style units to a site adjacent to its own BTR community, which suggests shared infrastructure or amenities are plausible even if the report does not say so explicitly.
The coverage leaves open how much W Properties paid for the roughly 12 acres, who is funding construction, and whether entitlements or permits are already in hand—details that would sharpen the read on the developer's confidence. The most consequential figure in the report is not the 252 units but the drop in Texas permitting, which measures the market's own supply reset. If completions track that permit decline, the 2029 opening is well timed; if absorption of the DFW pipeline runs long, the developer could open into the concessions it is trying to outlast.
Reported by the Deals desk from Connect CRE. Published . Corrections