Sorrel Phillips Creek Ranch is a 2015 vintage, 352-unit apartment community located in the affluent Frisco submarket of Dallas, TX. The low-density property features large units (>1,000 sf average), 60% 2- and 3-bedroom floor plans, and original interior finishes and common area amenities. The Property aligns with CenterSquare’s residential thesis to address the affordable housing crisis by targeting strong suburban locations with population growth, access to highways and employment, and highly-sought-after public schools.
The investment is being made on behalf of CenterSquare’s latest Value-Added fund. This opportunity was sourced off-market through CenterSquare’s established network of relationships. The business plan consists of upgrading countertops and cabinets, adding laminate vinyl plank to upper floors, and installing a technology package in addition to updating the fitness center and tenant lounge area. These improvements will allow CenterSquare to successfully execute its value-add renovation program and drive meaningful growth in net operating income.
“This transaction is the first investment in our latest Value-Added fund, and speaks to our conviction in reset valuations in the residential sector, providing a great entry point for high-quality assets at a substantial discount to today’s replacement cost,” said Chris Picyk, Senior Vice President in CenterSquare’s Private Equity Real Estate business.
