Class B multifamily homes are still changing hands in North Texas.

Los Angeles-based private equity firm Cottonwood Group, in partnership with Dallas-based Texsun Holdings, acquired the 224-unit Taylor Commons complex in Fort Worth last month, according to a release.

The seller did not disclose, but property records show it is Good Life Housing Partners, a student housing and multifamily investor also based in Los Angeles. Details of the financial transaction are kept under wraps, but the taxable value of the complex is $25 million, or $25 million per unit. Approximately $112,000 based on data from the Tarrant County Appraisal District.

Rental prices range from $900 to $1,300 a month, according to online listings.

The 172,000-square-foot property is located off Interstate 30 at 5600 Cotswold Avenue on the east side of Fort Worth. The apartment is 6 miles from downtown Fort Worth and 9 miles from AT&T Stadium.

The Cottonwood and Texsun partnership has been active as this will be their sixth multifamily acquisition in Texas. Together, the companies own three properties in San Antonio and two properties in Fort Worth. Their Texas portfolio currently has 1,200 Class B units.

According to its website, Texsun invests in undercapitalized Class B and Class C value-added assets with unique characteristics in strong submarkets. The company holds its multifamily properties for three to seven years before selling them.

The multifamily housing sector in Texas has been booming at a historic pace in recent years, and distress has begun to spread. Investors in Texas continue to avoid the word “distress,” but companies are raising capital to target opportunity, particularly in the Class B multifamily sector.

Still, real estate investment in Fort Worth, the fastest-growing major city in the U.S., remains strong.

With an estimated $2.3 billion worth of development under construction or in the pipeline, Fort Worth includes a variety of projects that have attracted investors to the city. Since 2020, Fort Worth’s population has grown 4.1% to about 1 million, the fastest-growing of the 30 most populous U.S. cities.

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