Aragon Holdings Buys Two Dallas-Area Properties
- May 01, 2013
Plano, Texas—Aragon Holdings has announced its acquisition of two Class A apartment communities in the Dallas area. They are Reserve at Pebble Beach and Somerset at Spring Creek, both 208-unit properties located in Plano, Texas, about 20 miles north of downtown Dallas.
The apartment communities were purchased with cash from Aragon Multi-Family Cash Flow Fund II, Aragon Holdings’ private equity fund. Financing was provided by Freddie Mac. The purchases swell Aragon’s multifamily portfolio to 6,000 units, all of which have been acquired in the past half decade.
Like its predecessor fund, the Aragon Multi-Family Cash Flow Fund II is a private equity fund created to facilitate the company’s acquisition activity and provide investors with monthly cash flow distributions. The fund targets 10 percent annual, tax-deferred, cash-on-cash returns, paid to investors monthly.
Aragon Holdings’ Texas properties, which encompass more than 3,000 units, have benefited from the strength of the employment market in the Lone Star State, says the company‘s president, Larry Clark. “It was with our first acquisitions in Texas that we built our model of acquiring properties in areas with strong job markets and robust demand for multifamily housing,” he reports.
The job market is particularly vibrant in Plano, which is home to six Fortune 1000 companies and enjoys a diverse employment base.
The company used its acquisition of properties in the Dallas/Ft. Worth Metroplex, Houston and San Antonio as a springboard for additional purchases of properties in Kansas City, Mo., Orlando, Albuquerque, Atlanta and Denver. Having purchased more than $250 million in multifamily assets in six states over the past year, Aragon Holdings is now seeking to buy additional multifamily communities nationwide in markets with strong job and population growth.
“We continue to identify attractive acquisition opportunities that will enable us to provide attractive, stable returns for investors participating in our private equity funds,” Clark says.