Argyle Real Estate Partners, a multifamily-focused real estate investment firm and Sembler Investments, an investment firm with holdings in real estate, health care and finance, today announced forming a partnership to acquire $1.5 billion in multifamily real estate, according to a press release.
The firms say the investment venture will focus on acquiring more than $1.5 billion worth of multifamily apartments in the Southeast and Texas over the next two to three years.
“We are very excited about our partnership with Ryan and the Argyle team,” said Mark Sembler, vice president of Sembler Investments, in the release. “In addition to the opportunities we are currently seeing in this market, we think a focus on this space benefits our other efforts at the same time.”
Argyle says the venture will utilize a core-plus strategy, referring to the development and management of units in good locations, with high-quality tenants. The release also says that the partnership will target apartments built after 2000, with a focus on Sun Belt markets, and will be led by Ryan Reyes, CEO and managing partner of Argyle.
The firm attributed this focus to population growth in the Sun Belt region, corporate relocations and “a higher quality of life for its residents.”
“The fundamentals for multifamily remain strong despite the recent macroeconomic and capital market trends. We believe this dichotomy between the underlying asset class and capital market conditions will present compelling investment opportunities in the months ahead,” Reyes said in the statement.
Sun Belt markets also have greater demand for multifamily housing than supply, which in turn leads to increase in rents. This means migration to Texas, and other areas in the Sun Belt, due to additional capital in its residential markets, make the area “recession resistant,” according to Kip Sowden, chairman & CEO of RREAF (a Dallas-based commercial real estate firm in the multifamily and hospitality development industry).
Formed in 2022, Argyle is a Tampa-based real estate investment team that has collectively acquired over $3.5 billion of multifamily properties during a combined 25+ years of experience, according to the release. Sembler is also headquartered in Tampa, and currently has asset investments in real estate, health care, financial services and hospitality industries.
In other recent proptech news, Atlas Real Estate, an investment brokerage and property management company in the single-family rental sector, reached $2.5 billion in asset management. VendorPM, a proptech company connecting building managers and service vendors, also raised a $20 million Series A led by Prudence.