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D-FW apartments sell to Lone Star Funds

More than 9,000 rental units are included in the latest sale to the Dallas investor.

Lone Star Funds is continuing its apartment-buying binge with a purchase of 46 rental properties.

The Dallas-based investor acquired more than 9,200 apartments in 17 Sunbelt markets from affiliates of Dallas’ Transcontinental Realty Investors and Australia’s Macquarie Capital.

“This is an attractive opportunity to acquire a large-scale, diversified portfolio of newer vintage, well-located and well-maintained multi-family properties across the Sunbelt,” Lone Star Funds’ André Collin said in a statement. “The portfolio’s properties are located in attractive growth markets that we expect to benefit from continued, strong secular trends, including business relocations, population growth and in-migration and strong income growth.”

Lone Star did not disclose terms of the transaction or identify specific properties included in the deal. But the sale reportedly tops $1 billion in value.

Capital One arranged financing from mortgage firm Freddie Mac. Eastdil Secured brokered the sale.

Several Dallas-Fort Worth apartment properties were included in the big purchase.

Lone Star Funds took deed to the 494-unit Lakeside Lofts apartments near LBJ Freeway in Farmers Branch, deed records show.

And the 248-unit DeSoto Ranch apartments on Polk Street in DeSoto, the 198-unit Parc at Garland apartments on Bobtown Road in Garland, the 150-unit Eagle Crossing apartments on Camp Wisdom Road in Dallas and the 200-unit Heather Creek apartments on Galloway Avenue in Mesquite were also purchased by Lone Star.

The McKinney Pointe apartments in McKinney and the Parc at Wylie apartments in Wylie were also acquired by Lone Star.

The Lodge at Pecan Creek and the Lakeview at Pecan Creek apartments in Denton also sold.

Lone Star Funds’ purchase from Transcontinental Realty Investors and Macquarie Capital follows a series of major North Texas apartment purchases.

In 2020, the private equity firm acquired more than 3,000 D-FW rental units from builder JPI in several transactions.

Founded in 1995, Lone Star Funds has raised 21 private equity funds with about $85 billion in value. The company owns a variety of investment real estate across the U.S.

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