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Debt & Equity

MLK quarterbacks Austin apartment recapitalization

MLK Real Estate Capital arranged the recapitalization of an off-market, 600-plus unit, five-property multifamily portfolio located in Austin, Texas.

MLK arranged the joint venture on behalf of its client, an Israeli real estate family office in partnership with an Austin-based multifamily operator, and procured a majority LP equity investment from a New York-based middle-market investment platform.

The sponsorship intends to take the properties through a focused repositioning process that will include unit renovations and exterior enhancements, and believes that new investment and focused management will allow it to boost performance and overall returns throughout the portfolio.

Solomon Kinraich, managing principal of MLK, commented, “We were drawn to this recapitalization by the quality of the sponsorship, value-add potential of the underlying properties, and property locations throughout Austin that are in the direct path of gentrification.

“We are proud as a firm to have arranged and placed the equity for this compelling and strategic Joint Venture and to have facilitated a partnership between two esteemed and well-regarded investment firms.”

The properties are clustered around the Domain and in South Austin.
According to Kinraich, they are well positioned in the supply/demand dynamic of the marketplace for workforce housing, offering a basic and cost-effective option for the working class of the city in a supply-constrained segment of the market.

The Sponsorship will manage day to day operations of the portfolio.

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