| Summary | National Percentile | Rank vs Metro |
|---|---|---|
| Housing | 66th | Best |
| Demographics | 47th | Good |
| Amenities | 9th | Fair |
Multifamily Valuation
| Property Details | |
|---|---|
| Address | 3416 Varsity Dr, Tyler, TX, 75701, US |
| Region / Metro | Tyler |
| Year of Construction | 1984 |
| Units | 63 |
| Transaction Date | 2024-09-27 |
| Transaction Price | $46,018,000 |
| Buyer | EDEN TYLER CO-OWNER LLC |
| Seller | HZF FOUNDRY BORROWER DE LLC |
3416 Varsity Dr, Tyler TX — Value‑Add Multifamily
Neighborhood occupancy has trended upward and renter demand is supported by a balanced renter base, according to WDSuite’s CRE market data; these are neighborhood indicators, not property performance. The 1984 vintage suggests scope for targeted renovations to enhance competitiveness and returns.
Situated in a suburban pocket of Tyler with a B neighborhood rating, this location is competitive among Tyler neighborhoods (ranked 30 out of 78) for overall fundamentals. Neighborhood occupancy has improved over the past five years and sits above the metro median, supporting income stability at properties serving everyday renters.
Construction in the surrounding area skews newer (average year 1993), while the subject’s 1984 vintage creates a clear value‑add path through common‑area upgrades, in‑unit finishes, and system refreshes to close the competitive gap. With an average unit size around 436 square feet, smaller‑format layouts can align with workforce and student/young professional demand profiles, potentially aiding lease‑up and turnover management.
Within a 3‑mile radius, population has grown in recent years with further population growth forecast, and household counts are expected to rise, indicating a larger tenant base over the medium term. Median contract rents in the neighborhood have risen over the past five years while the rent‑to‑income ratio remains moderate, a combination that can support occupancy while allowing disciplined pricing strategies. In a high‑cost ownership context (home values rank 6 of 78 locally and sit in the upper national percentiles), elevated ownership costs tend to sustain reliance on rental housing, which can bolster retention.
Amenities are modest immediately around the neighborhood, though restaurant density is competitive among Tyler subareas. Average school ratings in the neighborhood trail metro leaders, which may matter for family‑oriented demand, but smaller units often skew toward non‑family renter segments where school quality is a secondary driver. Overall, directional trends in incomes and renter concentration within the 3‑mile area support steady multifamily demand, based on CRE market data from WDSuite.
Safety indicators are comparatively stable versus the broader region. The neighborhood’s crime positioning is top quartile among 78 Tyler metro neighborhoods and sits modestly above the national middle of the pack, signaling relatively favorable conditions in a local context.
Recent trend data shows improvement: both property and violent offense rates declined year over year, placing the area in the top quartile nationally for improvement. While crime can vary by block and over time, these trends suggest a directionally supportive backdrop for renter retention and leasing.
Regional employment anchors contribute to the renter base by offering stable jobs within commuting range, supporting leasing consistency for workforce housing. The list below highlights a notable regional distribution and services employer accessible from the property.
- Sysco — food distribution (32.1 miles)
This 63‑unit, 1984‑vintage asset presents a straightforward value‑add thesis in a Tyler neighborhood with improving occupancy and a renter base supported by rising incomes and growth within a 3‑mile radius. According to commercial real estate analysis from WDSuite, neighborhood rent levels have advanced while rent‑to‑income remains manageable, indicating room for measured rent optimization alongside renovation-driven differentiation.
The area’s high-cost ownership landscape and competitive restaurant presence offset limited immediate retail density, helping sustain multifamily demand among workforce and young adult segments—well‑matched to smaller unit formats. Execution should prioritize targeted capex, operational efficiency, and leasing strategies that emphasize retention as the neighborhood continues to strengthen relative to the metro median.
- Value‑add upside from 1984 vintage via interior and common‑area upgrades
- Neighborhood occupancy improving and competitive among 78 Tyler neighborhoods
- Renter pool expansion within 3 miles supports tenant base depth and retention
- Manageable rent‑to‑income dynamics allow disciplined pricing power
- Risks: modest nearby amenities and lower school ratings could temper family demand