Western Wealth Capital offloaded an apartment complex in Arlington after struggling to make enough revenue to service the debt on the property.
The buyer is Arizona-based multifamily syndicator Rise48 Equity, Multi-Housing News reported. The price was not disclosed, but the property is appraised at $26.7 million, a little over $121,000 per unit, according to Morningstar. Marcus & Millichap represented the seller and arranged financing for the deal.
Fielder’s Glen is a 220-unit apartment complex located on 10 acres at 3601 Fielders Glen Drive. It was was built in 1985 and includes 14 two-story buildings.
Western Wealth Capital, a Canadian multifamily investor, purchased it in 2021. In December, the debt-service coverage ratio on the property’s loan was just 1.08, meaning cash flow was barely enough to cover debt service, according to Morningstar’s profile of the loan.
Arlington is located between Dallas and Fort Worth. While it’s often overlooked in favor of its larger neighbors, Arlington is the seventh-largest city in Texas, after El Paso. It’s home to AT&T Stadium and Globe Life Field, where the Dallas Cowboys and the Texas Rangers play.
Rise48 is a multifamily syndicator founded by Zach Haptonstall in 2019. Its deals are primarily in Phoenix and Dallas. The firm specializes in acquiring value-add properties, then renovating and selling them.
In November, $256 million in debt tied to Rise48 was watchlisted. Even so, Haptonstall claimed the firm is “not distressed.”
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As of May, Haptonstall and Rise48 had 11 securitized loans, three of which were watchlisted. The watchlisted loans total almost $99 million.
Despite the firm’s financial troubles, it continues to increase its North Texas holdings. In January, Rise48 purchased Pecan Ridge Apartments in Mesquite with plans to spend $5 million renovating the property and rebranding it as Rise Town East.
Earlier this month, Rise48 established an East Coast presence with an office in Charlotte, the Phoenix Business Journal reported.