In one of the largest value-add multifamily transactions by unit count in Austin this year, Archway Equities (Archway) and CAF Capital Partners (CAF) has acquired The Morgan, a 504-unit community in Austin, TX. For Archway and CAF, each of whom control approximately 1,000 multifamily units in the market, it is the first time the two firms have partnered on an investment in the Texas capitol.
Thanks to its strong relationships with principals and brokers in the Austin market, as well as the firms’ deep-seated reputation for being able to quickly execute and close on potential deals, Archway and CAF have been extremely successful in unearthing and closing on properties in Austin despite the competitive nature of the market. For The Morgan, they were able to pre-empt a full marketing process with a competitive offer and short due diligence period.
“The Morgan represented an opportunity to acquire a very functional and well-maintained value-add property with unrealized potential in a market with strong apartment fundamentals,” said Archway President Sean Moghavem. “We plan to continue to fine tune our portfolio building scale in markets where we have a significant presence like Austin.”
Built in the mid-1980’s the property offers a strong value-add opportunity. The previous ownership renovated approximately 45 percent of the units, and the new ownership plans to renovate the rest of the units, upgrading interiors with vinyl plank flooring, new countertops, stainless steel appliances, Nest thermostats, new recessed lighting and upgraded bathroom and kitchen fixtures. Community amenities include a bi-level swimming pool, resident lounge and a pet park. In addition, the team plans to cure the deferred maintenance on the property by repainting buildings and other community structures.
Located at 1801 Wells Branch Parkway, the property is located five minutes from North Austin’s two major economic hubs, The Domain (Austin’s “Second Downtown”) and Tech Ridge, which is home to such Fortune 500 companies as Facebook, IBM, Indeed, Charles Schwab, Dell, General Motors, and 3M. In addition, The Morgan is approximately eight minutes from Apple’s Parmer Campus, and nearby to the new Apple Operations America Campus currently under construction which is estimated to bring an additional 15,000 jobs to the area. The community was 95% leased at closing.
While the market’s job growth was temporarily slowed by the pandemic, the pace has begun to increase as additional companies continue to migrate to Austin.
“When the upgrades are completed, The Morgan will be an outstanding property in a market where job growth is outpacing the inventory of quality rental housing,” said CAF Capital Partners President, Jack Alexander.
Capital Markets completed the sale of the Axis and Mosaic multi-housing properties
NASHVILLE, Tenn, August 18, 2020 – JLL Capital Markets announced today that it has closed the $41.2 million sale of a two-property apartment portfolio in Nashville's thriving South submarket.
Archway Equities LLC., an affiliated entity of Archway Holdings Corp., sold the assets to an affiliate of Bond Companies in an off-market transaction via an unsolicited offer.
The portfolio comprises the Axis at 307 Glengarry Dr. and Mosaic at 1019 Patricia Dr. Located approximately 10 minutes from downtown, the portfolio's position along Murfreesboro Pike provides residents with fast access to Nashville's largest employment and entertainment nodes.
In addition, according to CoStar's recent Q2 report, South Nashville's cumulative growth has been strong, and rents are roughly 50% more expensive now than they were in 2010. This level of growth is outperforming the metro-wide figure by nearly 15 percentage points.
“We are strong believers in the fundamentals of Nashville and are committed to increasing our presence there,” said Sean Moghavem, President of Archway Equities. “We were able to exceed our business plan expectations in less than half our originally assumed hold period, resulting in a much stronger returns, even considering COVID. This is only due to Nashville’s dynamism and its ability to attract strong employers in its market.”
The JLL Capital Markets team was led by Senior Directors Ian Anderson and Peter Chacon.
“Despite the hurdles due to the pandemic, investor appetite for Nashville multi-housing remains strong,” Chacon said. “Buyers are confident in Nashville's long-term outlook and the market's ability to continue posting in the nation's top 10 rent-growth cities.”
DALLAS – JLL announced today that it has arranged financing for Archway Equities’ acquisition of six Class B multi-housing assets totaling 1,456 units in multiple states.
JLL worked on behalf of the borrower, Archway Equities LLC, an affiliated entity of Archway Holdings Corp., to secure the Freddie Mac financing, which will be serviced by Holliday Fenoglio Fowler LP, a JLL company and a Freddie Mac Optigo℠ lender. The portfolio has an average construction date of the mid-1980’s and totals 1.14 million rentable square feet.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Andy Scott and Director Michael Cosby.
Holliday Fenoglio Fowler, L.P. (HFF) announces the capitalization for the acquisition and renovation of Stone Ridge Apartments and Bristol Ridge Apartments, two apartment properties totaling 363 units in Nashville, Tennessee.
The HFF team worked on behalf of Los Angeles-based Archway Equities LLC to arrange the capitalization for the $29 million acquisition of Stone Ridge and Bristol Ridge Apartments. The seller acquired the assets in 2012 and 2013 as distressed bank-owned assets and spent the last six years improving and stabilizing them. The new partnership, with the help of asset managers Magma Equities and 37urban, intends to re-brand both assets and complete a renovation plan that will improve amenities and aesthetics on both properties.
Archway’s purchase of Stone Ridge and Bristol Ridge Apartments closed just days ahead of Amazon’s announcement of 5,000 new jobs in the Nashville market as well as the announcement of a new 600-employee office for Ernst and Young and AllianceBernstein’s move of its headquarters from downtown Manhattan to downtown Nashville.
Both properties are within six miles of downtown Nashville, accessible via U.S. Highway 41 and Interstates 24 and 40. The communities are adjacent to the Murfreesboro Pike retail corridor, which provides a wide variety of shopping and dining options, and proximate to the proposed MLS Stadium at the Nashville Fairgrounds. The area is also well-connected to public transportation and the Nashville International Airport.
The HFF equity placement team representing the sponsor included senior director Zack Holderman and analyst Daniel Pinkus.
“We are excited to enter the market with these two assets,” stated Sean Moghavem, President of Archway Equities. “Between the $300 million, 30,000-seat MLS stadium development and the $1.2 billion airport expansion nearby, we knew it would be a strong opportunity for us. We’re eager to find more assets here in the coming months and believe this market will continue to bear successful opportunities for us.”
“This portfolio is an excellent example of a forward-thinking sponsorship group with the capabilities and expertise to execute a complex business plan,” Holderman added. “Nashville is an exciting market with strong fundamentals, particularly for this profile of investment, which is located in a rapidly gentrifying submarket.”
DALLAS, TX – December 5, 2018 – Holliday Fenoglio Fowler, L.P. (“HFF”) announces a joint venture equity raise for the acquisition of two adjacent apartment communities in Dallas, Texas, totaling 712 units – Emory at Horizon North and Ashmore at Horizon North.
The sponsor, Archway Equities LLC, engaged HFF to source funding for the acquisition of the properties through Atlantic Creek Real Estate Partners, LLC.
Emory at Horizon North is an institutional-class property built in 1995 consisting of 14 three-story residential buildings comprising 348 units, which total 300,019 rentable square feet. Ashmore at Horizon North was built in 1997 consisting of 16 three-story residential buildings comprising 364 units, which total 309,360 rentable square feet.
The Plano-adjacent properties are situated on a total of approximately 36 acres at 4200 and 4300 Horizon North Parkway. The properties are immediately northwest of the President George Bush Turnpike and Dallas North Tollway in North Dallas, which provides residents easy access around the DFW metroplex. The communities each have separate amenity packages, which include features such as resort-style pools, sports courts, picnic/grilling areas, fitness centers, business center and conference rooms. The joint venture is planning to further enhance the amenities and renovate unit interiors in the next 24 months.
The HFF team representing Archway Equities LLC included director Michael Cosby along with senior director Mark Erland and director Matthew Benson.