Rastegar Launches $200M Multifamily REIT
- Jan 20, 2021
Real estate investment firm Rastegar Property Co. has launched a $200 million REIT that will invest in older multifamily properties in the Sun Belt region. The Rastegar Opportunity REIT Inc. will target “vintage” multifamily properties and reposition them through renovations, according to the company’s announcement.
Rastegar Founder & CEO Ari Rastegar said in prepared remarks that his firm is “concerned” over volatility within public markets but views cities with strong tech industries as safe havens for investments. The Austin, Texas-based firm, which also invests in other real estate asset classes, has been an active investor in the Austin multifamily market for the past few years. In 2019, the firm acquired several multifamily communities over the span of 5 months, with plans to renovate and add value to the properties.
The company picked up two boutique communities in West Lake Hills and Zilker Park that totaled 38 units, a 30-unit condo building in the central Austin neighborhood of Clarksville, and a 50-unit rental community in the city’s North Loop.
Last month, the company announced it had purchased an office in the Austin area to serve as its new global headquarters. The firm acquired the Espirit office building, a two-story, 29,685-square-foot office property in the West Lake Hills neighborhood, about seven miles west of downtown Austin. Rastegar said it planned to renovate the space to include outdoor amenities and features that focused on health and wellness in light of the pandemic, including enhanced air filtration systems and touchless entries and exits.
In recent months, Austin and other Texas cities have been magnets for tech companies looking to relocate from northern California, a phenomenon dubbed “Texit” by some. Earlier this month, Digital Realty announced it was relocating its global headquarters from San Francisco to Austin, following similar moves from Hewlett-Packard and Oracle.