Lynd Acquisitions Group (LAG), based in San Antonio, recently said hello to Texas in a big way by buying three garden-style apartment communities for over $150 million. One property in Houston and two in the Austin area account for 1,059 units. LAG, the affiliated acquisition arm of LYND, plans to invest $20 million into the value-add portfolio. The properties were sold by Sy Li, who bought it from the original developers without making any upgrades over the past 20 years.
“This is the kind of value-add opportunity you dream about as an apartment investor,” said A. David Lynd, CEO of LYND. “We have been working with this seller for two years in order to secure this portfolio and are very excited to finally be closing this transaction and getting on with the renovations.”
The two properties in Round Rock, which is about 20 miles north of Austin, include The Enclave Frontera, with 411 units of one-, two-, and three-bedrooms. The 366-unit Lakeside at La Frontera has one-, two-, and three-bedroom options. Both feature structured parking. The two properties were capitalized with an equity investment from an anonymous New York-based funder and a $105 million loan from TPG Real Estate Finance.
LAG is hoping to take advantage of the hot Austin housing market by investing $15 million into the Round Rock duo. “The Austin multifamily market has been on fire for some time now,” said Constantine Scurtis, co-CEO of LAG, who sourced the portfolio. “Dell’s headquarters is nearby, and Apple has started construction on a 133-acre campus that will generate approximately 15,000 new jobs. Apartments in this area are highly sought after by investors, so securing these two deals says a lot about our ability to find tremendous value-add opportunities.”
The Royal Oaks at Westchase in Houston rounds out the acquisition. It has 282 units with one-, two-, and three-bedrooms. Miami-based Florida Value Partners partnered with LAG on the deal, and Prudential PGIM provided a $29 million loan. The new owner is planning on $5 million in renovations.
Plans for all the acquisitions include modernizing amenities and clubhouses while improving parking areas. LAG will spend approximately $12,000 per unit on interior upgrades, including quartz countertops and ceramic tile backsplashes. Flooring will be changed out along with cabinetry. Stainless steel appliances, LED lighting, Nest thermostats, and USB charging stations will be added.
