Private equity real estate firm Trion Properties, which is based in West Hollywood, California, and Miami, has entered the Texas market with the acquisition of a 471-unit multifamily garden-style community in Lancaster, a Dallas suburb.
“The Dallas area is an extremely attractive market for real estate investors with its high growth and business-friendly environment. Riverbend Apartments is our first investment in Texas and adds nearly 500 units to our portfolio across the Southern and Western United States,” said managing partner Max Sharkansky. “Even as many firms sit on the sidelines, Trion continues to seek out the best opportunities for investment in fast-growing communities that can deliver the best returns for our investors.”
Riverbend Apartments features spacious one- and two-bedroom floor plans and a wealth of amenities, including three swimming pools. Once two separate properties, the community now comprises the 143-unit Riverbend section and the 328-unit Hunter’s Creek section.
According to Trion Properties, the community is located in an expanding submarket. South Dallas County also is seeing surging industrial growth that is expected to fuel job creation as several Fortune 500 companies have established themselves in the area. “This, combined with a limited supply of new multifamily developments in the pipeline, makes us optimistic for long-term rent growth in the multifamily sector,” noted partner Farhan Mahmood.
The transaction was an off-market deal sourced through Trion’s broker relationship network.
“One of Trion’s strengths is our ability to source and execute deals before they hit the market. With off-market transactions, we get improved entry prices that drive the overall economics of the deal,” added Sharkansky. “Acquiring this property at a very low basis, we estimate a yield of 5.63%, and, with a fully realized renovation strategy, we target a 7.01% untrended pro forma yield.”
As 2023 comes to a close, a year of transition will end, according to Sharkansky, who offered advice to investors for the new year.
“Investors realize they are now living in an interest rate environment that is unlikely to return to the ultra-low rates of the past decade,” he said. “Moving into 2024, if you have capital to deploy and a strong investment strategy, you will want to seize the opportunities to invest, particularly in markets like North Texas that are extremely attractive for multifamily investors.”