Rise48 buys apartment complex in Mesquite

$256M in debt tied to firm watchlisted in November; plans to spend $5M on renovations

Rise48 Buys Apartment Complex in Mesquite
Rise48 CEO Zach Haptonstall and Pecan Ridge apartments (Rise48, Rentable)

Rise48 Equity added to its Dallas-Fort Worth portfolio with the acquisition of a multifamily property in Mesquite.

The Arizon-based firm, led by CEO Zach Haptonstall, purchased the 210-unit Pecan Ridge apartments at 3236 North Galloway Avenue, with plans to spend more than $5 million on upgrades to the complex, the Dallas Morning News reported. The sale price was not disclosed.

Rise48 continues to expand its North Texas holdings, despite a mountain of debt. In November, $256 million tied to seven of Rise48’s assets in the Phoenix area was watchlisted. Haptonstall has denied the firm’s financial troubles, saying “we are not distressed,” even though Morningstar data showed that revenue stemming from the properties only covered half of debt payments.

For the recently acquired Mesquite property, Rise48 wants to renovate the pool, fitness center, landscaping and the exterior, rebranding it as Rise Town East. The purchase marks the company’s eighth acquisition in the Dallas area.

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“We purchased the asset from the original owner, who owned the deal since it was built 39 years ago,” Haptonstall told the outlet. “There’s significant value-add upside for us to execute our business plan on behalf of our investors. We own a deal across the street, so it’s nice to have economies of scale of over 400 units in this immediate area.”

Rise48 has purchased 48 multifamily properties in Texas and Arizona since the company was founded in 2019. The firm has conducted more than $2 billion in transactions.

This past summer, Rise48 purchased the Cantebria Apartments at 1950 Oak Creek Lane in Bedford, about 20 minutes northeast of Fort Worth. Terms of the deal were not disclosed, but the complex was valued at over $29 million, according to the Tarrant County Appraisal District. 

—Quinn Donoghue 

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