Park at Summerhill at 5201 Summerhill Road in Texarkana, Texas — Courtesy: Reynolds Asset Management
By Joshua Burd
Paramus-based Reynolds Asset Management has made two additions to its out-of-state holdings, acquiring a combined 360 apartments across two properties in Texas for $23 million.
The firm on Monday said the acquisitions, both in Texarkana, come as part of a joint venture with Jeff Juster’s Newport Capital Advisors LLC. They include Westridge Apartments, a 176-unit property at 700 Sowell Lane, and 184 units at Park at Summerhill at 5201 Summerhill Road.
The joint venture plans to invest another $3 million into upgrading the properties to address deferred maintenance and bringing fresh, renovated units to the market.
“Not only is Texarkana a great place to live, but it’s also a city which checks all of our boxes when it comes to key metrics — strong employment and incomes, low supply of inventory and high barriers to entry for new construction,” said Lou Reynolds, founder and CEO of Reynolds Asset Management. “It also happens to be at the intersection of three main highways, which is great for commuting and businesses alike. We are excited to be injecting fresh life into these great properties, and to be a part of the growth story happening in Northeast Texas.”
Marcus & Millichap’s John Hamilton brokered the transaction, which was facilitated with a fixed-rate, long-term Fannie Mae loan sourced by Allan Edelson and Joe Tarantino at Walker & Dunlop.
“The buyers, Reynolds Asset Management and Newport Capital Advisors, are taking advantage of two well-positioned multifamily assets in one of the strongest tertiary markets in East Texas,” said Hamilton, a first vice president of investments at Marcus & Millichap. “They will build upon both properties’ historically strong performances with exterior improvements and unit interior upgrades.”
The deal marks Edelson’s second with Reynolds since last August.
“We are excited to close another loan with the Reynolds team,” said Edelson, a senior managing director at Walker & Dunlop. “We are especially eager to work with Reynolds on a property that intends to improve and provide a great housing option for workforce tenants.”
