Nexpoint has used the reverse 1031 structure to recycle capital in other sales. At the end of 2016 it acquired a two-property portfolio in Houston, Texas for $108 million via a reverse 1031 exchange. In February, it acquired Hollister Place, a 260-unit apartment in Houston $24.5 million, a deal also structured as a reverse 1031 exchange.

Nexpoint was spun off from the closed-end NexPoint Credit Strategies Fund in June 2015, and began trading on the New York Stock Exchange under the NXRT symbol.

Its focus has been Class B workforce housing located mainly in Sunbelt states. In an interview with GlobeSt.com earlier this year CIO Matt McGraner explained the REIT's investment strategy.

We're buying assets that have going in have unlevered yields of 5.5%, and by investing roughly $4,500 per unit and being able to drive rents an extra $90 per month, getting ROIs of 20%, we're pushing that yield from a going-in 5.5% to about 7% at the end of our three-year hold.

FREDERICK, MD–GlobeSt.com has learned that Dallas, Texas-based Nexpoint Residential Trust has sold an apartment here as part of a reverse 1031 exchange that included two other assets in Dallas, Texas. The Frederick, Md., property is The Grove at Alban, a 290-unit building located at 1208 Alban Ct., built in 1980. The other two properties in Dallas are the Toscana at 17910 Kelly Blvd., and Miramar at 13015 Audelia Rd.

The properties traded for $57.3 million. HLC Equity from Pittsburgh, Pa., is the buyer, according to our source.

The Grove at Alban last traded in 2014 for $23.1 million.

Nexpoint Residential did not return a call from GlobeSt.com.

Nexpoint has used the reverse 1031 structure to recycle capital in other sales. At the end of 2016 it acquired a two-property portfolio in Houston, Texas for $108 million via a reverse 1031 exchange. In February, it acquired Hollister Place, a 260-unit apartment in Houston $24.5 million, a deal also structured as a reverse 1031 exchange.

Nexpoint was spun off from the closed-end NexPoint Credit Strategies Fund in June 2015, and began trading on the New York Stock Exchange under the NXRT symbol.

Its focus has been Class B workforce housing located mainly in Sunbelt states. In an interview with GlobeSt.com earlier this year CIO Matt McGraner explained the REIT's investment strategy.

We're buying assets that have going in have unlevered yields of 5.5%, and by investing roughly $4,500 per unit and being able to drive rents an extra $90 per month, getting ROIs of 20%, we're pushing that yield from a going-in 5.5% to about 7% at the end of our three-year hold.