Multifamily investors continued to show a robust appetite for Texas real estate, if these four recent deals are any indication.
Infinity on the Landing, Euless
Los Angeles-based ShainRealty Capital purchased the Landing and acquired 267 multi-family homes at 3720 Post Oak Boulevard near Dallas-Fort Worth Airport in the suburb of Euless. The object of class B+ was built in 1983. The average apartment size is 770 square feet, and average rents are 30 percent below market rates. ShainRealty will spend $3 million on renovations and upgrades and will rename the Infinity on the Landing property.
Bard Hoover and Wes Racht of Marcus & Millichap of California brokered the transaction. Rialto Capital of Miami provided the bridging loan. The seller was John Barker of Arlington’s 180 Multifamily Properties, headquartered in Arlington, Texas.
ShainRealty entered the Dallas market with the purchase of a 373-unit rental complex, Infinity on the Mark, for $46.4 million. The company made a second multifamily purchase in Dallas, paying $51 million for a 249-unit complex nearby now called Infinity on the Point. The privately held investment firm specializes in Class B and blue collar housing projects. The company said it plans further growth in the Sun Belt.
Axio, San Antonio
Miami’s One Real Estate Investment has acquired a 360-unit gated community in an off-market deal in San Antonio. The Class B apartment building named Axio at 8722 Cinnamon Creek Drive was built in 1985. It is less than a mile from South Texas Medical Center and less than 10 miles from major employers such as the National Security Agency and the Southwest Research Institute. OREI has invested $6 million in home renovation and will improve community facilities.
Axio is OREI’s second multi-family acquisition in the city. The Company’s Texas portfolio includes eight multi-family properties in Houston, Dallas, College Station, San Antonio and Austin, bringing the total number of units under management to 2,200 in Texas and 6,000 nationwide. Since 2001, the company has acquired and sold more than 11,000 value-added multi-family homes nationwide.
Rancho Mirage, Irving
California-based TruAmerica Multifamily purchased Rancho Mirage at 1200 Hidden Ridge in Irving’s Dallas/Fort Worth submarket. The 310 unit complex features a mix of one and two bedroom apartments. Community facilities include a 24-hour fitness center, lap pool, and racquetball court. TruAmerica is planning a multi-million dollar capital improvement program to renovate the property’s interiors and improve its attractiveness.
In the past 18 months, TruAmerica Multifamily has purchased 3,000 units in Texas. The portfolio includes nine properties in Dallas/Fort Worth, Houston and San Antonio. The company established a regional headquarters in Dallas in December 2020.
Virginia’s Capital Square purchased a 304-unit Class A multi-family development in Houston. The community was developed by Wood Partners and was acquired on behalf of CS1031 Houston Apartments, a Delaware statutory escrow offering for Section 1031 exchange, and cash investors, according to a press release.
Located at 3623 West Alabama Street, the complex features studios, one-, two- and three-bedroom units, as well as communal amenities such as a swimming pool, sky lounge and pinball machine.
The Flats at West Alabama, as it is currently known, is located in River Oaks, one of Houston’s most affluent neighborhoods. The median annual household income within a three-mile radius of the property is $163,000, and the property’s submarket has seen annual rental growth of about 9.5 percent since early 2021, according to a press release citing CoStar Statistics.
CS1031 Houston Apartments, DST intends to raise $56.5 million in equity from accredited investors.
The parties involved have not disclosed sales amounts for any of the four deals.