ATX Acquisitions

We bought an awesome property in Austin last year:

📜 Our business plan:

→ Upgrade interior finishes in all units
→ Upgrade common areas
→ Augment revenue through operational upgrades, targeted 48% increase in other income from adding bulk wifi, covered & reserved parking
→ 5-year hold period

🤝 Debt Terms:

→ $6.34MM in total
→ 5 yr term period
→ Seller financed
→ 4% interest rate
→ 5 yr IO

💵 Equity infusion: $2,722,492

💸 Potential returns for LP investors:

→ Net LP Avg. CoC: 7.7%
→ Net LP Equity Multiple: 2.17x
→ Net LP IRR: 18.4%

💡 We win deals like this because we value the fundamentals:

→ We focus on broker relationships
→ We focus on one business plan
→ We focus on increasing NOI

If you want to see future deals like this, check out our website or comment “DEAL” below! ⤵️

atxacquisitions.com

Dallas is leading Texas' economy.

Dallas Business Journal's article says it all: Dallas attracts excellence.

📈 "Firms are relocating to Texas from higher-cost states in droves. There are nearly 89 active relocations and expansions of organizations in Texas, according to Texas Economic Development. Industry leaders such as JP Morgan Chase, Citigroup, Goldman Sachs, Deloitte, Liberty Mutual, Charles Schwab and Toyota have relocated their headquarters to Dallas or significantly expanded their operations in recent years."

We are thrilled to invest in Dallas - we believe the city will continue to lead markets.

Are you investing in Dallas?

Comment below or DM the team at ATX Acquisitions to learn how today! ⤵️

Team Update!

Ian Renkes joined the team at ATX Acquisitions and Resprop Managment this month.

- Ian is originally from Wyoming but has lived in almost every part of the country since high school.
- Ian is a graduate of College where he studied Political Economy and Financial Management.
- Prior to joining the team, Ian worked as a distribution analyst at Placemakr.

He's a self-starter and we're glad to have him on the team.

Ian, welcome aboard!

A new report revealed a 72% year-over-year decline in apartment sales.

According to MSCI, despite falling apartment prices, the multifamily market has yet to see a significant increase in deals. In October, apartment sales fell to $6.2 billion – a 72% drop compared to the previous year.

This shift is primarily attributed to the escalating interest rates, which are reshaping the dynamics of the multifamily market. There's a gap between the expectations of current owners and those of prospective buyers. This gap is expected to narrow as loans reach maturity for existing property owners.

Looking ahead to 2024, we're optimistic about a rebound in transaction volumes. Currently, opportunities are out there waiting to be seized, but they are harder to find.

MSCI: Apartment sales fall for 14th straight month Multifamily transactions declined 72% year over year to $6.2 billion, while prices dropped 13.7%.

20% Net IRR Multifamily Investment Opportunity

ATX Acquisitions has secured a multifamily deal, priced below market, and located in Dallas, TX.

Reasons we believe this opportunity is exceptional:

- High Projected Returns: Eleven600 has a projected 20.0% Net IRR, 2.29x Net Equity Multiple, and a 6.9% Average Cash Yield.
- Stable Cash Flow: Fully stabilized property with positive cash flow from day one.
- Low Ex*****on Risk: Light value-add plan focused on exterior enhancements, providing a low-risk opportunity for returns.
- Attractive Submarket: Located in North Lake Highlands near major Dallas economic hubs.

Within just a few days, we have already raised 70% of the equity. Given the attractive returns, we expect this deal to be oversubscribed within just a few weeks.

Space is limited; we will take investments on a first come, first served basis.

If you are an interested accredited investor, comment "Deal" or email us at [email protected].

In May the House unanimously passed legislation to expand the pool of accredited investors, going beyond income and wealth thresholds. The SEC is now required to determine the certifications and designations needed to be an accredited investor with the goal of modernizing the accreditation process, strengthening investor protection, and expanding investment opportunities.

These updates will revolutionize the landscape of real estate investment. At ATX Acquisitions, we have a team with 15+ years of experience in capitalizing on real estate opportunities. This time will be no different.

Connect with us and see how we can unlock your potential in multifamily real estate investments.

House unanimously passes bills to expand accredited investor pool House lawmakers Monday unanimously approved two bills that would expand the accredited investor pool by expanding the criteria.

Great compilation by Newmark. Austin has major developments underway. This is part of the reason why we remain excited about multifamily opportunities in Central Texas (with Austin in particular). Tons of growth from Tesla’s expansion to Samsung’s new plants. Check out some highlights below:
- Tesla planning 1.7M SF in expansions to Austin gigafactory – CultureMap (2023)
- Apple planning to spend $240M on expansions to its 3M SF second campus under construction – KVUE (2023)
- IBM finds new Austin home at The Domain – Axios Austin (2023)
- Three new projects announced for The Domain – Austin Business Journal (2023)
- Construction is underway on 1M SF of healthcare space – Austin Business Journal (2023)
- Q5id establishes a second HQ in Austin – Cision (2023)
- Dell Children’s Hospital opens its $191M north campus – Austin American-Statesman (2023)

https://austin.culturemap.com/news/city-life/tesla-s-austin-headquarters-files-for-800-million-campus-expansion/
https://www.kvue.com/article/money/economy/boomtown-2040/apple-austin-campus-expansion/269-9d63b536-0b3c-44b3-8e48-8507b974077b
https://www.axios.com/local/austin/2023/05/03/ibm-will-move-to-new-domain-building-by-2027
https://www.bizjournals.com/austin/news/2023/02/28/austins-medical-real-estate-taking-off-in-high-gr.html
prweb.com/releases/2023/5/prweb19332927.htm
https://www.statesman.com/story/news/healthcare/2023/04/24/austin-dell-childrens-medical-center-north-campus-first-look/70088620007/

Austin-area hospitals: Where, why new medical real estate is being built - Austin Business Journal There are hospitals under construction in seemingly every corner of the Austin area.

Nuveen, the investment management arm of TIAA, acquired over 12,000 units from OmniHolding last month, marking the largest apartment transaction in the US in the past decade (article link).

Why is this relevant to us? Affordable housing is a resilient investment sector that has consistently delivered favorable yields, even throughout economic cycles. Nuveen's move emphasizes the increasing demand for quality affordable housing and the opportunities it presents for institutional investors.

Moreover, with almost half of US renters categorized as “rent-burdened,” investing in affordable housing promises attractive long-term returns and contributes positively to the well-being of local communities.

As we navigate the dynamic landscape of real estate investment, we continue to keep an eye on these opportunities.

https://www.costar.com/article/1505421272/nuveen-buys-12000-plus-apartments-in-major-affordable-housing-bet

Nuveen Buys 12,000-Plus Apartments in Major Affordable Housing Bet TIAA Investment Arm Touts ‘Resiliency’ of Assets Even in a Recession

Recent news highlights that even top property owners are facing potential default despite their creditworthiness. Big names like Brookfield and Blackstone have found themselves in challenging situations, with increasing delinquency rates and loans being sent to special servicing. It seems the current market conditions are proving tough for everyone, regardless of their reputation and financial standing.

For instance: The rising cost of replacing interest rate hedges is another key concern in the market. To give you a sense of the scale, a 3-year cap at 3% for a $100M loan cost $23K in 2020, but today, a one-year extension costs a staggering $2.3M. But our prudent strategy has kept us resilient in the face of these steep increases.

But here's the good news: At ATX Acquisitions, we've been strategic and cautious with our investments over the past few years, and this approach is paying off. Unlike these major players, we've not been aggressively acquiring assets, which means we're not facing the same pressures or potential pitfalls they are.

Top Property Owners Are Creditworthy—They Might Default Anyway Powerful investors such as Brookfield Asset Management are starting to cut their losing real estate bets to protect returns.

Our hotel, the historic Hotel Ella, was featured as one of Austin's coolest boutique hotels.

The Coolest Boutique Hotels in Austin, From Retro-Chic Properties to Glamorous Estates Austin's boutique hotels are full of the city's signature touches, from on-site food trucks to great live music.

📈 Navigating the Landscape of Rising Borrowing Costs

The current economic uncertainty and heightened borrowing costs are leading to a wider gap between buyers and sellers in commercial real estate. These conditions are pushing the market towards buyers and elongating deal closure time​.

At ATX Acquisitions, we're not just observing these trends – we're preparing for them. We anticipate that as rates stabilize, deal activity will surge. We're building our war chest now, ready to seize the wave of distressed deals that lie ahead.

Stay tuned as we navigate these shifts and strive to generate optimal returns for our investors. 📊

Rising Borrowing Costs Push Buyers, Sellers Further Apart Deals Up To $15 Million Are Taking Longer To Close

Our Founder, Peter Rex, joined Fox & Friends this past Sunday to discuss the property insurance issue California is facing.

State Farm suspends home insurance sales in California | Fox News Video Tech entrepreneur Peter Rex joined 'Fox & Friends Weekend' to discuss his reaction to why the company is halting the insurance sales in the Sunshine State.