AUSTIN, TX-AREA Property Partners in New York City and San Francisco-based McDowell Properties joined forces to acquire $215 million in defaulted debt on a 4,733-unit apartment portfolio. The joint venture acquired the debt, which is secured by 17 multifamily assets in four states, at a 40% discount.

Though a specific list of the properties were not available, the portfolio spans Florida, Oklahoma and Texas, with the greatest concentration of assets located in Austin. The upside potential in this deal is the occupancy, which currently stands at 84%.

“The transaction represents the rare opportunity to acquire a portfolio of assets in this dynamic high growth market at an attractive discount to the current debt basis,” said Steve Wolf, AREA partner in a statement detailing the acquisition.