MG Properties Bets on DFW Rebound with Sola Galleria Acquisition

FARMERS BRANCH, TX – January 06, 2026 – In a significant move underscoring long-term confidence in the North Texas real estate market, San Diego-based MG Properties has acquired the Sola Galleria Apartments. The deal, announced today, expands the firm's portfolio in the Dallas-Fort Worth (DFW) metroplex, a region navigating complex market dynamics of high supply and resilient demand.

The acquisition of the modern residential community from sellers HLC Equity and The Hampshire Companies represents a strategic bet on the future of one of the nation's fastest-growing metropolitan areas. The transaction was brokered by a team from IPA, who also led the financing through their capital markets division, highlighting the intricate coordination required to close major deals in today's cautious investment climate.

"This transaction underscores our continued confidence in the Dallas–Fort Worth market," said Jeff Gleiberman, President of MG Properties, in a statement. "Farmers Branch remains an attractive submarket due to its central location, economic vitality, and sustained demand for rental housing."

Navigating a Market in Transition

MG Properties' acquisition comes at a pivotal moment for the DFW multifamily sector. After years of record-breaking construction, the market has been grappling with elevated vacancy rates, which hovered between 11% and 12% in late 2025. This supply glut contributed to eight consecutive quarters of negative year-over-year rent growth, a trend that has tested investor resolve.

However, a deeper look reveals a market on the cusp of rebalancing. The pipeline of new construction has slowed dramatically, with units under construction falling to a decade-low of approximately 30,000 in the third quarter of 2025. This sharp decline from the peaks seen in 2023 and 2024 is expected to ease pressure on vacancy and pave the way for a return to positive rent growth, with some analysts projecting a 2% increase by mid-2026.

Furthermore, the demand side of the equation remains exceptionally robust. The DFW region, now home to over 8.4 million people, has been adding residents at a staggering pace of nearly 400 per day since 2019. This demographic boom is fueled by relentless job creation, with the metroplex adding more new jobs in 2024 than 41 U.S. states. Net absorption of rental units has remained resilient, with thousands more units being occupied than delivered in recent quarters, signaling that the immense population influx is steadily consuming the available inventory.

The Strategic Allure of Farmers Branch

The choice of Farmers Branch for this key acquisition is far from incidental. Situated at the crossroads of Dallas's northern suburbs, the city offers a unique blend of suburban comfort and urban accessibility. Its location, bordering the bustling retail and entertainment hub of Addison, provides Sola Galleria residents with a coveted "live-work-play" lifestyle without the density of the urban core.

This submarket has demonstrated its own resilience, reporting a vacancy rate of 10.2% in mid-2025, notably better than the DFW average. The city's proactive and business-friendly governance, including a low tax rate and a formal "Multi-Family Development Policy" to ensure high-quality growth, has made it a magnet for strategic development and investment.

The competitive landscape is dynamic, with significant new projects rising in adjacent Addison, such as the Jefferson Arrow and Amley Treehouse mixed-use developments. However, these projects also signal the area's intense desirability. The development of a major Transit-Oriented Development (TOD) project connected to the DART Silver Line, providing a direct link to DFW International Airport, is set to further enhance the submarket's connectivity and long-term value, benefiting existing properties like Sola Galleria.

A Playbook for Value and Growth

MG Properties is known for its hands-on, value-add investment approach, a strategy well-suited for the current market. The firm has announced plans to implement its trusted playbook at Sola Galleria, focusing on enhancing operational efficiencies, improving resident satisfaction, and executing selective property upgrades.

This active management style is crucial in a competitive rental environment. By investing in the property and prioritizing the tenant experience, the company aims to differentiate Sola Galleria, boosting occupancy and commanding stronger rents as the market tightens. This strategy moves beyond passive ownership, seeking to actively create value within the asset itself, independent of broader market cycles.

Founded in 1992, the firm has a vast portfolio of over 32,000 rental homes across seven states, giving it deep experience in navigating diverse market conditions. This acquisition represents a calculated deployment of capital, buying an existing, well-located asset at a time when new construction is tapering off.

This purchase, one of a rising number of deals led by private buyers in late 2025, suggests that sophisticated investors see the current market headwinds as a window of opportunity. While overall investment volume in DFW was muted through much of last year, the increasing activity signals a renewed belief in the region's foundational strength. For seasoned investors with a long-term horizon, the powerful combination of slowing supply and unrelenting demographic growth makes Dallas-Fort Worth a compelling arena for strategic investment.