FORT WORTH-The first multifamily deed has rolled into the portfolio of Crow Holdings Realty Partners IV LP, an $850-million fund that closed in April. Dealmakers, though, have three more acquisitions waiting in the wings.
The powerhouse investment giant has come out on top in the competition for the 253-unit Alta Ridglea Village Apartments at 3601 Westridge Ave., widely marketed for $25 million by Chicago-based Moran & Co.'s Dallas office. Crow Holdings' director Dodge Carter won't say how much was paid, but did confirm for GlobeSt.com that the deal closed for less than the ask. Tarrant County Appraisal District has levied a $21.9-million assessment against the nine-acre development.
Carter says roughly 25% of the buying pool is earmarked for multifamily investment. The details aren't yet available, but deals have just closed in Austin, Denver and Houston as well.
Carter says Alta Ridglea is envisioned as a seven- to 10-year hold. "It's a market that investors, like ourselves, really like to be in, but you really have to manage the exposure," he explains, adding it's the only Crow-owned multifamily property in Fort Worth.
Alta Ridglea Village's location clearly weighed heavily on the chase. It neighbors the prestigious Ridglea Country Club and is close to the Village at Camp Bowie, an eclectic mix of retail, restaurants and rental properties. Alta Ridglea Village is one of the newest properties in its submarket--built in 2004 by Atlanta-based Wood Partners Inc.
The 91%-leased apartment complex has one-, two- and three-bedroom units ranging from 636 sf to 1,558 sf. Rents are $780 to $1,475 per month. The Greensboro, NC-based Steven D. Bell & Co.'s Dallas team will manage the holding for Crow.
Carter says Crow's fourth value-add fund will be used to acquire class A properties built after 1990. The requirements are locations on either coast or the Sunbelt. The sweet spot is more than 175 units and minimum all-in capitalization of $15 million. The fund has capped the debt ratio at 70%. Crow Holdings is the fund's largest investor, having committed $150 million of its own capital.
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