Even as investment sales remain sluggish, the growth keeps on coming for Ashland Greene.
The multifamily firm, which last month landed on the Inc. 5000 list of the fastest-growing private companies in America, has acquired three more properties in the Dallas-Fort Worth metroplex. The deals put the company’s portfolio over 6,000 units across 20 properties.
The purchases were financed with fixed-rate loans, as the firm steered clear of the floating-rate debt that has led to distress at some other Sun Belt multifamily firms.
The first two properties, at 5301 Alpha Road in Dallas and 3056 Commodore in Grand Prairie, total 442 units and cost $92 million.
Both will get renovations to units and amenities. The one on Alpha will compete with Class A products nearby, a first for the firm.
“Multifamily demand remains high, in large part due to high interest rates impacting the ability to buy a home,” said Shakti C’Ganti, the founder of Ashland Greene. “Rent growth has decreased a bit because of increasing supply, but overall, the multifamily sector has proven to be one of the most resilient within commercial real estate.”
The third acquisition, now called Ashland Greene at Valley Ranch, has 267 units, and the price was not disclosed. However, the firm plans to spend about $7 million renovating the Irving property, which sits within 5 miles of between Interstate 35E and I-635.
The firm says it acquired the property off-market at a 10 percent discount from its December 2022 price. It also said it used a 6.25 percent Freddie Mac loan — agency lending has been considerably freer than private markets in recent months. The bad times have been good to Ashland Greene, C’Ganti told TRD last month. “I think human nature is to freeze, so we are seeing opportunities from groups that bought aggressively in 2021 and 2022,” he said.
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