WACO, TX—When apartment rental complex, Arlington Farms, sold to TTHFD Investments LLC earlier this year, it freed up capital for reinvestment, according to The PPA Group, an Austin, TX-based real estate investment firm. The 168-unit multifamily community is located at 1800 Primrose Dr. on approximately 15 acres, GlobeSt.com learns.
The property includes a pool, basketball court, tennis court, clubhouse and onsite laundry facilities. The PPA Group executed numerous improvements, including enhancing the landscaping, paint, gutters, pool area, foundations and roofs.
“The sale of Arlington Farms generates additional capital to reinvest in class-B and -C multifamily properties in the Houston, Dallas-Fort Worth, San Antonio and Austin areas,” says Monte Lee-Wen, president and CEO of The PPA Group. “We look forward to exploring our next real estate opportunity where we can add value to a community, improve the experience for its residents and help create wealth for our investors in this economically booming area.”
JLL senior vice president Moses Siller and managing director Scott LaMontagne represented the seller.
“Arlington Farms is a great value-add opportunity,” said Siller. “We anticipate the property will pay tremendous dividends with the right strategic investments, thanks in part to the Waco's growing economy and infrastructure.”
Since 2002, Lee-Wen has closed numerous transactions alongside managing and repositioning properties across the United States. With the addition of its new REIT, Upside Avenue, launching in the near future, the company is actively looking for multifamily, senior living and student housing properties throughout the US.
The combination of PPA Group's financial technology, experience and access enables investors to invest with institutions, family offices and high net-worth investors in a diversified fund of recession-resistant, multifamily, student housing and senior living properties in US cities for the low thousands.
“During the late 2000s economic downturn, we became one of the fastest-growing real estate companies because of successful, strategic buying and selling like this,” Lee-Wen said. “Finding the right Texas multifamily investment enables The PPA Group to carry on this tradition of growth.”
Lee-Wen recently discussed the improvements his firm made in the Arlington Farms property, what types of properties PPA Group finds attractive and how Magnolia Market has influenced Waco.
GlobeSt.com: What improvements were made to the property prior to sale?
Lee-Wen: We made exterior improvements like replacing the roof and new paint on the buildings. Improvements were also made to the clubhouse.
GlobeSt.com: What types of Class B/C properties are being targeted in the Houston, Dallas-Fort Worth, San Antonio and Austin markets?
Lee-Wen: We are proud of the capital we were able to acquire through the sale of Arlington Farms and look forward to reinvesting that in other local real estate projects. With that capital freed up, we're in the process of buying multifamily apartment complexes that once purchased we'll carry out capital improvements on.
GlobeSt.com: How much impact has Magnolia Market had on Waco?
Lee-Wen: Magnolia Market's shops and restaurants have given Arlington Farms' residents a nearby, stylish lifestyle destination to enjoy, and has encouraged a lot of prospective home hunters to scope out Waco and its surrounding towns.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
