SWBC cashes in a Texas multifamily portfolio

The firm sold its five Royalton properties to two investment firms looking to get in on the Dallas and Austin rental markets

Lightbulb's Jay Schuminsky, SWBC's Stuart Smith and 7920 Collin David South Drive (LinkedIn, SWBC, Google Maps)
Lightbulb's Jay Schuminsky, SWBC's Stuart Smith and 7920 Collin David South Drive (LinkedIn, SWBC, Google Maps)

SWBC Real Estate sold its Royalton Portfolio — five multi-family properties across suburban North and Central Texas. The full portfolio, which totaled more than 1,400 multifamily units, went for $350 million to two California-based investors.

“The continued population growth across the state helped escalate the leasing velocity for each property, while also providing attractive rent growth throughout the lease-up of the portfolio,” the company said in a statement.

Lightbulb Capital Group picked up the lion’s share of the portfolio, buying four of the five properties—all located around the Dallas-Fort Worth metroplex.

SWBC announced the sale of Central Park at Craig Ranch to the investor for “an undisclosed amount” back in March. The Los Angeles-based firm has already renamed the 271-unit community in McKinney to ​​Luxia Craig Ranch. The Royalton at Rockwall Downes, another property listed in the Royalton Portfolio was also closed on by the firm around this time.

In a March email to Community Impact, Lightbulb partner Ramsey Soliman said the firm has big plans for expansion in the area. With the addition of The Royalton at Craig Ranch in McKinney and The Royalton property in Grand Prairie in the final SWBC deal, Lightbulb has added a total of 1237 units to its North Texas portfolio.

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“This was a special opportunity to scale our DFW multi-family footprint with four best-in-class properties in highly desired markets,” said Lightbulb owner and CEO Jay Schuminsky.

Brixton Capital purchased the fifth property, the only one located in the Austin area. The private real estate investment firm, based outside of Del Mar, now owns the 300-unit Royalton at Sunfield property in Buda.

“It’s apparent that there is still a very aggressive appetite for new multi-family properties in the Dallas and Austin markets, as there was a large amount of interest in the sale of these properties,” said Stuart Smith, Chief Operating Officer of SWBC Real Estate, LLC. “Additionally, the recent uptick in interest rates is causing some concern with the future values of commercial real estate properties; however, the continued interest in the multi-family sector in well-located areas throughout Texas has remained strong at this time.”

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