Tides spends north of $165M on Texas portfolio

In its third Texas acquisition this month, Tides Equities closed on a whopping multifamily portfolio Tuesday. The California investment firm bought three Dallas properties for north of $165 million. It acquired 1,037 units in the deal. The sellers were Austin-based Pennybacker Capital and Dallas private equity firm Strategic Property Investments.

Two of the three communities are in the Town Creek neighborhood in northwest Dallas’ Town Creek neighborhood. Firefly, at 9505 Royal Lane, was built in 1978. It’s a 340-unit garden-style community, with 30 two- and three-story buildings on 12 acres. Its one- and two-bedroom apartments are an average unit size of 875 square feet.

Nearby Foxglove, at 9450 Royal Lane, was also built in 1978. It’s a 3-acre site with six two- and three-story buildings with a total of 117 units. The one-, two- and three-bedroom apartments have an average size of 749 square feet.

The third property in the just-purchased portfolio is Overlook Ranch, on a 20-acre site at 3550 Timberglen Road about 20 miles northeast of downtown Dallas. Built in 1984, it has 580 units in 61 two-story buildings. The one- two- and three-bedroom apartments average 870 square feet.

All three properties have community amenities such as swimming pools, dog parks and fitness centers. Overlook adds tennis and sand volleyball courts to the mix.

The company plans to spend about $20 million renovating and upgrading the three properties. They will be renamed Tides at Royal Lane North, Tides at Royal Lane South and Tides on Timberglen.

Tides, which specializes in value-add multifamily real estate, has been expanding across the western and southwestern United States for several years. It has been especially bullish on the Dallas-Fort Worth area, where it has acquired 37 multifamily properties since 2016. While the company dropped a bundle on the three properties it bought Tuesday, it spent a little more in the metroplex earlier this year, buying two apartment complexes for about $172 million in January. https://therealdeal.com/texas/2022/01/25/tides-equities-makes-106m-texas-multifamily-deal/