An investor just picked up an apartment complex in one of Dallas-Fort Worth’s hottest multifamily submarkets.
Knightvest Capital bought the 240-unit Encore Apartments at 4700 Tribeca Lane in Plano, according to a news release. The seller was an entity of Arizona-based Equus Management Inc., and Charles Duff signed deed documents as president of Equus.
The price wasn’t disclosed, but Knightvest borrowed $40.7 million from Invesco for the purchase, deed records show. It is the first investment from Dallas-based Knightvest’s second fund, according to the release. The loan amount comes to $169,600 per unit.
The three-story apartment complex was built in 2013 and has a pool and gym. Knightvest plans to renovate unit interiors and add amenities, including a tenant lounge.
Its location in North Plano appealed to the buyer because of “high-wage jobs, exemplary school district, and leading entertainment venues,” the release stated.
The Collin County suburb commands some of the highest rents in DFW. The city’s average rent was $1,700 in the first quarter, compared to $1,548 across the Metroplex, according to Colliers. Its vacancy rate of 8.1 percent is lower than the metro’s 11.6 percent.
The median price per unit for multifamily investments in DFW hovered above $140,000 in the first quarter, according to Colliers. That’s on par with the rest of the county and higher than Texas overall. Multifamily sales volume spiked in the third quarter of last year, but otherwise, it has been dropping from a peak in 2021, when multifamily investors flocked to Texas amid a housing shortage and low interest rates.
Knightvest was founded in 2007 and has invested more than $10 billion to acquire over 60,000 units in high-growth markets in California, the Carolinas, Florida and Texas since then, according to the release.
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