Since Brazos Residential bought its first deal in April 2022, the firm has been on a frantic buying spree despite the uncertain financing environment.
In 2022, the Dallas-based owner and manager founded by multifamily brokerage veterans William Hancock and James Roberts acquired almost 3,000 units across 15 properties, predominantly in Texas and North Carolina. After a brief hiatus, it added the 606-unit The Thread Apartments in Dallas in late June and is expected to close on another 172-unit property in Arlington, Texas, by the end of July, The Presidium Group previously owned the property, according to Patch.
The Thread Apartments, which sits on the border of the Dallas city limits and Richardson, Texas, consists of three phases constructed between 1969 and 1978. The property is adjacent to the Texas Instruments headquarters and provides direct access to Interstate 75 and the Lyndon B. Johnson Freeway, commonly known as the Telecom Corridor.
The Thread recently emerged from a land use agreement. Brazos can create immediate value by charging full market rate rents, according to the company’s press release. The company is also planning other upgrades at the property.
“There is a lot of deferred maintenance and a lot of opportunity to go in and implement a substantial value-add program, hold it for a period of time and get a big equity multiple on the back end,” said Brazos’ Director of Investor Relations Taylor Leander.
Off-market opportunities
Brazos secured The Thread Apartments in an off-market deal. Before founding the company, Roberts served as senior vice president on Northmarq’s Dallas multifamily team and Hancock was senior vice president in Northmarq’s Mortgage Banking Division. Those positions gave the duo a good perch to spot opportunities in the market.
“All of our purchases have been completely off-market,” Leander said. “Seven of those were purchased from the original developers. I think that sets Brazos apart. James’ and William’s relationships in the brokerage community run really deep and their knowledge of DFW, in particular, is second to none.”
The property is the sixth that Brazos has purchased in the DFW market. "The proximity of The Thread to other Brazos Residential properties and our corporate headquarters presents strategic synergies, supporting the expansion of our portfolio in our own backyard,” Hancock said in a press release shared with Multifamily Dive.
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