The multifamily market in Texas is scorching, and Tides Equities is poised to strike while the iron is hot.
The California-based investment firm inked a deal to buy the Montecito Creek Apartments, a 650-unit complex at 11330 Amanda Lane in Dallas, for $79.5 million. Tides bought the 484,269-square-foot complex, located on more than 23 acres in the Highland Meadows neighborhood, from Texas’ Exponential Property Group. The purchase brings Tides’ investment in Dallas-Fort Worth multifamily properties to $1.5 billion this year, for almost 9,000 units.
Tides specializes in renovating older multifamily residential complexes, upgrading and branding them in the process, to properties aimed at a middle-income market. Improvements include a number of identical elements—upgraded fixtures and finishes, slatted wooden fences and trim, white exterior walls, bocce courts and other common amenities—that make them recognizable as Tides properties. The transformation also comes with a new name: Montecito Creek will be rechristened Tides at Highland Meadows.
The complex was built in two phases between 1984 and 1986. Apartments average 745 square feet and are all one- or two-bedroom units. Tides plans to spend around $15 million on renovating the property, for which it paid $79.5 million, according to a person familiar with the deal. Tides partnered with a family office to finance the deal with a debt fund execution loan.
The sale signals the inroads Tides has made in Texas—particularly in Dallas, where it made 28 acquisitions with a total of 8,790 units in 2021—making it the largest buyer in the multifamily area in the Dallas market this year. Over the past several years, Tides has been expanding a multifamily portfolio across the Western United States, mainly in Arizona, Texas, California and Nevada.
With affordable housing—and housing in general—scarce, luxury home sales booming, and rents surging across the country, multifamily housing is becoming an increasingly active and vital part of the real estate market.