Lynd Acquisitions Group Buys 1,059-Unit Texas Portfolio

The deal included three communities located in Austin and Houston and will undergo a total of $20 million in capital improvements.
One of the properties in the portfolio. Image courtesy of Lynd Acquisition Group

A portfolio featuring two multifamily communities in suburban Austin and one in Houston has changed hands for more than $150 million. Lynd Acquisitions Group (LAG) acquired the 1,059-unit portfolio, comprised exclusively of garden-style communities.

Seller Sy Li had acquired all three properties from their original developers within the past two decades. The communities were not given upgrades during that time.

The two suburban Austin communities are both located in Round Rock and were constructed in 2001. The Enclave Frontera at 2800 La Frontera Road features 411 units in a blend of one-, two- and three-bedroom floorplans. Lakeside at La Frontera at 941 Hesters Crossing has 386 units in one-, two- and three-bedroom options.

Both properties offer structured parking, an unusual feature among garden-style products. The properties were capitalized with an equity investment from a prominent New York-based institution and a $105 million loan from TPG Real Estate Finance. 

The portfolio’s third community is Royal Oaks at Westchase, located at 11212 Westpark Drive in Houston. It features 282 units in a blend of one-, two- and three-bedroom floorplans. Florida Value Partners teamed with LAG on the transaction, and PGIM furnished a $29 million loan. 

Transaction obstacles

LAG initially experienced very few hurdles in completing the transaction. Then, “at the very end, we had this Coronavirus pop up, to the point where there were equity groups saying if we didn’t get this done, we might not close at all because they might just press pause,” A. David Lynd, LAG CEO, told Multi-Housing News. “And that literally transpired the day of closing. You had (NBA player) Rudy Gobert get it, the mayor of Miami get it and all that happened the day we were closing . . . That made it human, it scared people tremendously. We just knew we had to close because you give someone a reason to not close, sometimes they exercise it because they can.”

The Round Rock properties benefit from proximity to major employers. The corporate headquarters of Dell Inc. is nearby. Apple Inc. has broken ground in the area on a 133-acre campus expected to bring approximately 15,000 new jobs.

LAG plans $15 million in upgrades and renovations at the Round Rock apartment communities and another $5 million at the Houston Property. Upgrades will include modernized amenities and clubhouses, improved parking areas and unit enhancements totaling approximately $12,000 per apartment. Kitchens will benefit from quartz countertops and ceramic tile backsplashes. Bathrooms will receive quartz countertops. Other upgrades in each unit include new flooring and cabinetry, stainless steel appliances, LED lighting, Nest thermostats and USB charging stations.

This closing brings to $240 million the total value-add acquisitions undertaken by LAG in the past half year. In January, the company recently landed a $45 million loan to refinance and renovate a Texas portfolio.