Calif. real estate firm acquires Fort Worth apartment complexes, plans to renovate
A California real estate company has a new stake in Fort Worth apartment property.
Los Angeles-based Cottonwood Group acquired the Woodstone Apartments, 6051 Bridge St., and Bridge Hollow Apartments, 5801 Bridge St. The apartment portfolio in east Fort Worth is made up of 480 multifamily units.
“Given supply and demand dynamics, Cottonwood remains bullish on the multifamily sector overall, especially in markets that offer a combination of job growth, an attractive climate, and relatively low living costs like Fort Worth,” Cottonwood’s chief investment officer Mark Green said. “Cottonwood Group’s multi-strategy approach means the firm will look at any primary or growth market inside and outside of Texas.”
Cottonwood acquired the property in partnership with Dallas-based Texsun Holdings. Earlier this year, Cottonwood partnered with the private equity firm for two multifamily assets in San Antonio.
“We are thrilled to complete another transaction with Texsun and to add such a high-quality asset to our Texas portfolio,” Green said in a release. “While other traditional investors may be pulling back due to economic and market uncertainty, we remain bullish on the multifamily sector.”
Both firms budgeted $5 million for renovation and repositioning of the Fort Worth properties, which total 342,000 square feet of real estate. The renovation investment will go towards interior and amenity upgrades, according to Cottonwood.
Since opening in 2012, Cottonwood has managed more than $3 billion in assets. The company previously financed and developed multi-million dollar projects in New York, San Francisco, Boston and Los Angeles. The private equity real estate firm focuses on equity and debt opportunities across the country.
This is Cottonwood’s first project in the Dallas-Fort Worth metroplex. The company’s first Texas deal was in 2019 when the firm provided a loan for Texas Medical Center’s InterContinental bridge in Houston.
Partnering firm Texsun offers commercial real estate solutions for company and individual investors. The company has previously seen success investing in multifamily apartment communities through physical renovations and operational upgrades.
“Our team is excited to build upon our relationship with Cottonwood to complete another successful acquisition in Texas,” Texsun’s managing partner and co-founder Sean Fogelman said in a release. “We are eager to continue expanding our presence in Texas, and the Fort Worth Portfolio acquisition plays a key role in helping us achieve that goal.”
This story was originally published August 26, 2022 at 12:02 PM.
