Rise48 Equity continues to expand its holdings in North Texas Despite concerns about the firm’s debt last year.
The multifamily syndicator based in Phoenix purchased a 144-unit apartment complex at 2929 Kings Road on the edge of Dallas’ Oaklawn and Park Cities neighborhoods. Northmarq brokered the sale and arranged the financing.
Prime Finance lent $21.2 million for the purchase, according to loan documents. That works out to $147,222 per unit. The term of the loan is five years, including extensions, Northmarq said in a news release. The property is valued at $24 million by the Dallas Central Appraisal District.
The complex was built in 1998 and includes one-, two- and three-bedroom floorplans. It also features a pool, tanning salon, dog park and fitness center. The location offers easy access to Dallas North Tollway and Interstate 35.
Rise48 has acquired at least two other DFW multifamily properties this year.
In May, it purchased Fielder’s Glen, a 220-unit apartment complex built in 1985. It’s located at 3601 Fielders Glen Drive in Arlington.
The firm also purchased the 210-unit Pecan Ridge apartments at 3236 North Galloway Avenue in Mesquite. It plans to spend $5 million on upgrades there, specifically to the pool, fitness center, landscaping and exterior. The property has been rebranded as Rise at Town East.
Since the Federal Reserve reduced interest rates earlier this week, experts expect to see more commercial transactions like these.
However, pricing for multifamily properties likely won’t bounce back until the market experiences rent growth, Madera Residential’s Jay Parsons said.
Rise48 was founded by Zach Haptonstall in 2019. Its deals are primarily in Phoenix and Dallas. The firm focuses on acquiring, renovating and reselling value-add multifamily properties.
In November, $256 million in debt tied to Rise48 was watchlisted. At the time, Haptonstall claimed the firm was “not distressed.”
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