The first purchase from CenterSquare’s value-add fund is an apartment complex in rapidly growing Frisco.
The Philadelphia-based investor picked up Sorrel Phillips Creek Ranch, a 352-unit property at 5050 FM 423, according to a news release from CenterSquare. The seller is Nashville-based Carter-Haston Holdings.
Financial details of the deal weren’t made public, but the buyer assumed a $35.6 million mortgage ($101,000 per unit) with an interest rate of 3.36 percent in the transaction. The loan from 2019 still has its full principal amount.
The property’s taxable value is $68.1 million, appraisal district records show. Its valuation has jumped nearly 30 percent since 2020, when it was appraised at $52.5 million
Sorrel Phillips Creek Ranch was built in 2015. CenterSquare plans to renovate the property by upgrading the units, fitness center and tenant lounge.
Due to its massive population growth, Frisco leads the Metroplex in multifamily construction. About 8,000 units are expected to be delivered in Frisco, Allen and McKinney, according to Partners Real Estate.
The historic surge of supply has dampened rental rates throughout the Metroplex, but strong demand means high-growth suburbs like Frisco will continue to outperform, Partners said. Multifamily operators are betting the bottom of the multifamily market is in the rearview mirror and they’ll be able to ride the wave of rental rate increases with purchases.
Part of the coming deluge of deliveries will be in the form of megadevelopments in Frisco’s pipeline.
Upcoming projects include Firefly Park, a 217-acre project from Wilks Development that’s expected to cost between $2.5 and $4 billion, as well as an unnamed project from David Weinreb’s Weinreb Ventures, which is expected to deliver 1,039 units in its first phase.
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