Knightvest Capital Acquires 240-Unit Encore Apartments in Plano

Knightvest Capital Acquires 240-Unit Encore Apartments in Plano, Texas

Knightvest Capital has completed the acquisition of the 240-unit Encore Apartments in Plano, Texas, marking the inauguration of their second fund. The property, situated at 4700 Tribeca Lane, was sold by Equus Management Inc., based in Arizona. Knightvest secured a substantial $40.7 million loan from Invesco, amounting to approximately $169,600 per unit. This three-story complex, constructed in 2013, offers conveniences such as a pool and gym. Knightvest intends to enhance the interiors and introduce new amenities, including a tenant lounge. Plano's allure stems from its flourishing job market, exceptional school district, and vibrant entertainment destinations, leading to elevated rental rates and comparatively low vacancy rates compared to the Dallas-Fort Worth Metroplex. The median price per unit for multifamily investments in the Dallas-Fort Worth area surpassed $140,000 in the initial quarter, demonstrating a resilient market despite sales volume fluctuations since 2021. Knightvest, established in 2007, has a history of investing in burgeoning markets nationwide, with an excess of $10 billion allocated to acquiring over 60,000 units.

Key Takeaways

• Knightvest Capital secures the 240-unit Encore Apartments in Plano, Texas, with funding from Invesco.
• The acquisition cost was not disclosed, but the $40.7 million loan equates to approximately $169,600 per unit.
• Plans for refurbishment encompass interior upgrades and the addition of new amenities like a tenant lounge.
• Plano's attractive rental rates and low vacancy rates make it an appealing investment option.
• Knightvest has a strong track record, investing over $10 billion in excess of 60,000 units across flourishing markets.

Analysis

Knightvest Capital's acquisition of Encore Apartments in Plano, Texas underscores their commitment to dynamic, high-growth markets. This move stands to benefit both Invesco, offering a substantial loan return, and Equus Management, securing a profitable exit. Plano's robust job market and reputable educational institutions sustain high rental rates, a promising scenario for Knightvest. Immediate impacts include renovation expenses and potential adjustments in rental rates. Over the long-term, Knightvest's portfolio diversification reinforces, while the local rental market dynamics may experience shifts due to the introduction of new amenities. Overall, this investment reflects unwavering confidence in multifamily real estate, notwithstanding market fluctuations.

Did You Know?

• Knightvest Capital:
  • Founded in 2007, Knightvest Capital is a real estate investment firm specializing in acquiring multifamily properties in high-growth markets across the United States. With a significant investment of over $10 billion in more than 60,000 units, the company focuses on strategic investments that capitalize on emerging market trends and economic growth.
• Encore Apartments:
  • A 240-unit multifamily residential complex constructed in 2013, Encore Apartments in Plano, Texas offers amenities like a pool and gym and is strategically located within a region known for its thriving job market, distinguished school district, and lively entertainment options. Knightvest Capital's acquisition of this property emphasizes its strategy of investing in well-located, high-potential multifamily assets.
• Invesco:
  • An eminent global investment management company, Invesco provided a $40.7 million loan to Knightvest Capital for the acquisition of Encore Apartments. This financing arrangement highlights Invesco's pivotal role in real estate financing, supporting large-scale real estate transactions and investments.