As part of its Operation 25K expansion, multifamily investor, manager and developer MC Companies has purchased its third Texas multifamily community this year – The Sage at 1825 and Sage Cottages (“The Sage”), two adjacent properties totaling 455 units in the rapidly growing Pflugerville suburb of northeast Austin.
Following its proven value-add investment approach, MC Companies will deploy a robust renovation strategy at The Sage and rebrand the properties as The Place at 1825.
“The Sage represents a deep value-add opportunity where 94 percent of the units are in classic condition, offering a significant opportunity to renovate, modernize and rebrand as The Place at 1825,” said MC Companies Director of Acquisitions Bobby Bull. “This makes for an ideal new addition to our growing portfolio and a strong long-term acquisition for our investors, in a market where we see high job growth and high demand for housing. We are eager to find more properties like this in Austin and similar markets.”
Located at 15835 Foothill Farms Loop in Pflugerville, Texas, The Place at 1825 will offer studio, one-, two- and three-bedroom floorplans ranging from 690 to 1,350 square feet. Amenities include a resort-style swimming pool, main clubhouse, business center, fitness center, soccer field, on-site dog park and playground.
Apartments feature hardwood floors, arched entries and private interior staircases. Select units feature fireplaces and walk-in closets, and a mix of carport, attached and detached garage options.
The MC Companies renovation plan will upgrade kitchens, bathrooms, fixtures and appliances, modernize exteriors and common areas, and add contemporary features such as Amazon storage lockers to reflect the expectations of residents in the metro Austin market.
The community offers convenient access to Tollway 130 and Interstate 35, and major employment centers such as Parmer Center, La Frontera and Tech Ridge Center. It is also just 20 minutes from a planned $17 billion Samsung Electronics chip plant expected to generate thousands of new jobs.
Acquisition of The Sage was made possible by an equity portion from MC Companies and its investors. The CBRE Debt/Equity team of Michael Thompson and Frances Rodgers arranged the debt financing. CBRE’s Charles Cirar, Michael Wardlaw, Colin Cannata and Connor Moore served as the property listing broker.
The Sage is the third multifamily asset purchased in Texas this year by MC Companies. It is part of Operation 25K, designed to grow the MC portfolio from 6,000 to 25,000 units under ownership by 2029. With its acquisition of The Sage, total units under ownership and management by MC Companies now totals approximately 7,000.
MC’s two previous 2021 Texas multifamily acquisitions include the 384-unit Enclave at Cypress Park and 264-unit Paramount Apartments, both located in the Houston suburb of Katy, Texas. MC Companies will combine and rebrand the properties as The Place at Barker Cypress and deploy a value-add investment strategy similar to the one planned at The Sage.
MC Companies founders Ken McElroy and Ross McCallister have been leaders in the multifamily investment industry for over 30 years. The company continues to actively pursue new land for development and existing properties for value-add investment.