Mamaroneck, NY – June 14, 2024 – LRE Management LLC (“LRE”), a New York-based real estate investment manager for Family Offices, High Net Worth individuals and Advisors, announced the sale of its 80% Joint Venture ownership interest in Water Ridge Apartments (“the Property”), a 476-unit multifamily property located at 4600 W Pioneer Drive in the Irving area if Dallas. The property sold for $57,000,000, five and a half years after acquiring it for $44,000,000.
LRE acquired Water Ridge in 2019 as a Value-Add opportunity with favorable long-term fixed-rate agency financing. Previous ownership had renovated ~90% of the units, but had not completed the lease-up post renovation or pushing rents to market. Centrally located in Irving, and just a few miles South of DFW International Airport, the property benefited from Dallas’s booming economy and population growth. The property features 232 one-bedroom floorplans, 224 two-bedrooms, and 20 three-bedrooms, as well as tennis courts, pool, clubhouse and fitness center for residents.
The property was refinanced in 2020, allowing for a significant return of capital at that time. The partnership encountered several unique challenges over the life of this investment, including multiple freeze issues that caused major plumbing problems (most significantly from the Great Texas Freeze), the property’s insurance company went bankrupt, and had a fire that took one building offline for a long period of time.
“We are pleased with the outcome of this investment especially in the current transaction environment, and considering the number of setbacks that were thrown at us. This deal was a great example of even when things don’t go as planned, if you buy at the right cost basis in the right markets, and finance with long-term fixed debt, you can still comfortably exit,” said Eric Londa, Founder and Managing Partner of LRE. “The Dallas market has benefited from strong growth fundamentals in recent years, and we feel it will continue to do so into the foreseeable future. At one time we owned over 800 units in Dallas, and while the sale of Water Ridge marks our exit from the (Dallas) market, it will continue to be a target market for our Fund, LRE Opportunity Fund I.”
About LRE Management
LRE Management is a leading real estate investment company with a focus on repositioning and renovating institutional-grade multifamily properties in the Sun Belt and Midwest regions. Since its founding in 2012, LRE has acquired over 6,600 units across 10 states, with transactions totaling in excess of $1 billion. LRE’s goal is to deliver consistent risk adjusted returns to its investors through all economic cycles. The firm employs a disciplined approach to asset selection, intensive asset management and property operations while working to improve communities for its residents. To learn more please visit lremanagementllc.com and follow us on LinkedIn.
Contact:
Justin Lacy | Investor Relations and Marketing
LRE Management LLC
justin@lremanagementllc.com