RangeWater Real Estate was able to tap into existing relationships to land Sorrel Phillips Creek Ranch, a 352-unit property in Frisco, Texas, earlier this month.
“It was an off-market transaction, which was an appealing aspect for us, and it was sourced through a relationship that we had with the seller,” Michael Hoy, acquisitions managing director at RangeWater Real Estate, told Multifamily Dive. “It was the right place and the right time.”
The Atlanta-based owner, manager and developer was joined by its Conshohocken, Pennsylvania-based equity partner, CenterSquare Investment Management, on the deal for an undisclosed price.
RangeWater is actively seeking new land sites and existing properties throughout the Dallas-Fort Worth metropolitan area.
“This one fits into our strategy pretty nicely, being that it's a 2000s-and-newer vintage located in a high-barrier-to-entry market in a growing part of the city,” Hoy said. “It is surrounded by an affluent demographic with high single-family incomes, and it has great visibility.”
RangerWater was able to purchase the property, which features 352 luxury one-, two- and three-bedroom units ranging from 776 to 1,476 square feet, below replacement costs, according to Hoy.
“The units are about, on average, 1,100 square feet,” Hoy said. “So, they’re larger than what you typically see being built today. So it lends itself more to families as well.”
Built in 2015, Sorrel’s apartments offer open floor plans with plank wood-style flooring, 9-foot ceilings, walk-in closets, stainless steel appliances, granite countertops and walk-in showers. The property’s amenities include courtyard grounds, a clubhouse, a fenced-in dog park, a resort-style swimming pool, a media center and a state-of-the-art fitness center.
RangeWater will make interior and exterior capital improvements to the property. “We will be doing some minor upgrades to both the interiors and the common areas,” Hoy said. “The way we think about this business plan is that we want to be [priced] below the new supply in the market but still very competitive with them.”
RangeWater currently manages more than 3,000 units across 17 properties in Texas. Sorrel is the ninth community under management in the Dallas-Fort Worth metro area for the firm, which operates a portfolio of more than 72,000 multifamily units across 13 states.
Hoy said the firm plans to continue adding to that portfolio, but admits the transaction market hasn’t fully recovered from the last couple of years.
“I think the market, from a buying perspective, is still challenging, given the environment and seller expectations,” Hoy said. “We think 2025 should be a good year to continue to purchase selectively, but I don't think it's going to be a gangbusters year or anything.”
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