Tides Equities, moving ahead with a push into Texas, picked up its second multifamily complex in Austin.
The Los Angeles investment firm bought the 636-unit Hendrix apartment complex at 9811 Copper Creek Drive on Friday, paying Fortress Investment more than $100 million, according to a person familiar with the deal, speaking anonymously because prices aren’t publicly available in Texas. Tides worked with another company on the deal, which was financed with a combination of cash and a debt-fund execution loan, the person said.
The company paid $43 million for Tides on South Lamar, at 3622 Menchaca Road, in October, and plans to spend about $5 million renovating the 217-unit complex. The purchases build on the $1.5 billion that Tides spent last year in Dallas for 28 properties with 8,790 units. Tides cofounder Sean Kia has said the multifamily market in the Texas capital is tougher.
“We love Austin and are trying to break in,” he said. “It’s just harder. Not as much trades in Austin. Austin real estate is definitely more expensive than Dallas.”
The Hendrix complex will be rebranded as Tides at Copper Creek. Tides specializes in renovating older multifamily residential complexes, upgrading and branding them in the process, and repositioning them as 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 and sport courts and other common amenities—that make them recognizable as Tides properties.
The company plans to spend about $13 million renovating Tides at Copper Creek. The 557,786-square-foot complex has 636 units ranging from studios to three-bedroom, three-bathroom apartments, averaging 877 square feet.
The company has been expanding a multifamily portfolio across the western and southwestern United States as well. Last year, it completed 77 transactions for more than $4.3 billion and 21,000 units in across those markets, with $1.2 billion dollars of acquisitions in Phoenix and $650 million of acquisitions in Las Vegas.