Machine Investment Group has acquired Rise 120, a newly built property with 227 multifamily units and 15,000 square feet of ground-floor retail in Georgetown, Texas, in an off-market transaction. The asset, delivered in the first quarter of 2024, sits in a fast-growing submarket of the Austin metropolitan area and is positioned near key employment hubs in Georgetown, Round Rock, and North Austin.
Rise 120 is located about two minutes from Interstate 35, offering access to Downtown Austin and major North Austin demand drivers, including Dell, Apple and the Domain area. MIG cited Georgetown’s recent population growth and the broader Austin region’s ability to attract an educated, higher-income resident base as key drivers supporting long-term fundamentals, even as parts of the market work through elevated new supply.
MIG said it acquired the property at a purchase price roughly 30% below the developer’s basis, attributing the discount to capital markets dislocation and a temporary oversupply environment. The firm plans to accelerate lease-up and further differentiate the community by adding amenities that are slated to include a golf simulator, sauna and cold plunge. Existing amenities include a pool, fitness center, resident lounge, grill area and dog park.
The firm also highlighted the property’s retail component as a competitive advantage, describing Rise 120 as the only building in its competitive set with retail space. MIG plans to support the retail lease-up with tenant improvement allowances.
MIG completed the acquisition in partnership with Alta Real Estate Partners. Walker & Dunlop represented the seller in the transaction. MIG said it targets opportunistic, distressed and special-situations investments across property types, primarily in middle-market opportunities within institutional and emerging markets, leveraging direct sourcing relationships and an operating platform built across market cycles. The firm noted its senior management team has experience overseeing investment vehicles totaling approximately $2.4 billion.
KEY QUOTE:
“Austin recognized significant overbuilding in the recent commercial cycle, however we believe the multifamily distress is transitory in specific submarkets as the MSA offers some of the strongest medium-to-long term fundamentals in the country.”
Eric Rosenthal, Co-Founder and Managing Partner, Machine Investment Group
