Transcontinental Realty Investors and Macquarie Group team up on multifamily joint venture

Subsidiaries of Dallas-based Transcontinental Realty Investors, which specializes in Texas Class-A multifamily developments, and Australia’s Macquarie Group are forming a joint venture to invest in apartments.

The new business will focus on creating a “business platform that will allow dramatic expansion in the multifamily arena,” according to a statement by the companies carried in a HousingWire report.

The new company, Victory Abode Apartments, will do business as Abode Properties Services, already owns 10,133 units in 11 states with three more multifamily complexes currently under construction.

Publicly-traded TCI and its subsidiary Southern Properties Capital contributed more than 50 multifamily assets to the joint venture’s portfolio, while Macquarie made a “substantial equity investment.”

Macquarie’s investment contribution was not disclosed. Sun Belt multifamily investors are increasingly attracting global players.

Sydney-based Macquarie recently moved its American operations into new digs at the Kushner Companies-owned 666 Fifth Avenue office tower, and has been making a big push in the U.S. market over the past year.

Victory Abode Apartments/Abode Properties Services will seek to increase the overall size of the portfolio over the next several years, through “strategic buildout of its robust development pipeline alongside opportunistic acquisitions,” according to the report.

The companies say that the venture will seek to increase the overall size of the portfolio over the next several years, through “strategic buildout of its robust development pipeline alongside opportunistic acquisitions.”
The joint venture will focus its investments on Class A properties, acquiring existing complexes and building new ones in “focused secondary and tertiary markets.”