37th Parallel Closes Fund II with Strategic Off-Market Dallas Acquisition

RICHMOND, VA – July 30, 2026 – Multifamily real estate investment firm 37th Parallel Properties announced today the acquisition of Woodbridge Villas, a 222-unit apartment community in Sachse, Texas. The transaction, sourced off-market, not only expands the firm’s significant footprint in the Dallas-Fort Worth metroplex but also marks the final strategic investment for its second fund, 37P – Fund II.

The acquisition underscores a disciplined investment thesis focused on high-growth suburban submarkets with strong demographic tailwinds and significant barriers to new competition. By securing the property directly from the seller, the Richmond-based company was able to acquire the asset below its appraised value, recent comparable sales, and the estimated cost of new construction, positioning the investment for success in a competitive market.

A Deep Dive into a Premier DFW Submarket

The choice of Sachse, a burgeoning suburban enclave in northeast Dallas, was highly intentional. The area represents a pocket of affluence and stability that aligns perfectly with 37th Parallel’s long-term investment criteria. "Woodbridge Villas is the type of asset and submarket we have consistently pursued throughout our history," said Dan Chamberlain, Managing Partner. "Sachse is an affluent, supply-constrained pocket of northeast Dallas with a median household income of approximately $117,000, top-rated schools, and a crime rate roughly half the Texas average."

Independent research validates these claims. The property is zoned for the highly-regarded Wylie Independent School District, with feeder schools like Cheri Cox Elementary (10/10 rating) and Grady Burnett Junior High (9/10 rating) serving as major draws for families. This educational appeal, combined with a reputation for safety and a strong community feel, creates what Chamberlain calls "long-term, family-oriented demand."

Furthermore, the economic dynamics of the submarket create a compelling case for rental housing. "Submarket homeownership costs drive a durable rent-versus-own affordability buffer, which also supports occupancy and pricing power," Chamberlain added. In an area where the cost to buy a single-family home is high, quality rental communities like Woodbridge Villas provide an attractive and financially accessible alternative for many households.

Critically, the Sachse submarket is characterized by a near-zero forward supply pipeline. With only one project currently under construction and no new multifamily developments proposed within a seven-mile radius, the barriers to entry are formidable. Factors such as limited entitled land, the proximity of established single-family neighborhoods, and local political resistance to increased density collectively insulate existing assets from new competition, fostering an environment of steady occupancy and sustained rent growth.

The Strategic Advantage of an Off-Market Deal

In today's capital-intensive environment, the method of acquisition is as important as the asset itself. Sourcing the Woodbridge Villas transaction on an off-market basis provided 37th Parallel with a distinct competitive advantage. It allowed the firm to bypass a competitive bidding process, which often drives up prices, and negotiate terms directly.

"Woodbridge Villas brings together the elements we prioritize most: an institutional-quality, low-density asset in a desirable suburban submarket with strong demographics and a constrained supply backdrop," explained Darci Poole, Transaction Manager. "Sourcing the transaction on an off-market basis allowed us to purchase below appraisal, comps, and replacement costs, all with conservative underwriting assumptions."

This disciplined approach extends to the deal's financing. The acquisition was capitalized with a low-leverage, fixed-rate Freddie Mac loan arranged by Cutt Ableson and Patrick Hickey at Berkadia. The loan was structured with a full-term interest-only period, a key feature designed to maximize current cash flow for investors, minimize future refinance risk, and provide a protective buffer against potential macroeconomic headwinds or interest rate fluctuations.

A Capstone Investment for a Successful Fund

The acquisition of Woodbridge Villas serves as the capstone investment for 37P – Fund II, an income and equity growth vehicle that has successfully deployed capital across several of the nation's most dynamic markets. Following a strategy similar to its predecessor, Fund I, the fund targeted value-add and core-plus multifamily properties in high-growth corridors. With this final asset, Fund II now holds a diversified portfolio with investments in Charlotte, Austin, Atlanta, and Dallas.

The successful closing of the fund with a high-quality asset like Woodbridge Villas speaks to the firm's consistent execution. "In an environment where capital discipline and market selection matter more than ever, Woodbridge Villas reflects our continued focus on acquiring institutional-grade, well-located assets in growth submarkets with durable demand and limited supply," said Chad Doty, Managing Partner. "We look forward to delivering an attractive tax-advantaged investment to our investor family on this project."

Founded in 2008, 37th Parallel has built a formidable reputation by focusing on institutional-quality multifamily communities across the South and Southeast, completing over $1.2 billion in transactions while maintaining a 100% profitable track record for its investors.

An Institutional-Quality Asset

Situated on a spacious 10.5-acre site, Woodbridge Villas offers a low-density living environment with a mix of one-, two-, and three-bedroom floor plans that average 875 square feet. The 2002-built community features 11 residential buildings with apartment and community amenities designed for modern suburban life. Units include nine-foot ceilings, private patios or balconies, and highly sought-after attached and direct-access garages.

The community's amenity package is comprehensive, featuring a resort-style swimming pool, a well-equipped fitness center, a resident clubhouse and business center, outdoor grilling and lounge areas, and a pet park. The property will be managed on site by RPM Living, a top-five nationally ranked property management company, ensuring a high standard of operations and resident service. To learn more about 37th Parallel's investment philosophy and track record, interested parties can visit their website at www.37parallel.com.