Trending
Leste Group, GVA buy 744 Texas apartments as part of larger $380M deal
Partnership acquired three communities in suburban Dallas and Houston, plus two more in Tennessee and South Carolina
A partnership between Miami investment firm Leste Group and Austin-based multifamily landlord GVA Management picked up 744 rental units in suburban Dallas and Houston as part of a larger $380 million acquisition, The Real Deal has learned.
The Texas properties — which include Spring Pointe at 3501 North Jupiter Road in Richardson, the Bluffs at Vista Ridge at 625 East Vista Ridge Mall Drive in Lewisville and the Retreat at Stafford at 12700 Stafford Road in Stafford — traded hands as part of a broader deal in which Leste Group and GVA Management acquired five Class B properties totaling 1,670 units across three states. The other assets included in the deal are in Tennessee and South Carolina.
Leste Group announced the deal on Wednesday, but did not specify the addresses for the Texas properties, how much it spent for the Texas portion of the portfolio nor who the seller was, but each of the complexes acquired were previously owned by Utah-based multifamily REIT Cottonwood Residential.
“Texas at large is a key multifamily market for Leste’s overall real estate strategy. We are attracted to the real estate fundamentals there, driven by the positive migration to cities like Austin, Dallas and Houston, and know the state to be a friendly place to do business,” said Leste Managing Director Josh Patinkin.
The transaction is Leste’s first acquisition so far this year. Last year, the firm registered over $500 million in deal activity, including acquiring two properties in northwest Austin totaling 538 units. Patinkin said that his firm is targeting more multifamily deals in Texas.
The partnership plans to spend $17 million to renovate the properties involved in this month’s deal. According to the terms of the joint venture, GVA will manage the buildings and oversee the renovations.
Leste, which also has an office in New York, focuses on real estate and alternative asset classes. GVA, meanwhile, has a portfolio of 24,800 units across Texas, Tennessee, the Carolinas and Colorado.