Machine Investment Group Seizes Growth Opportunity with Rise 120 Acquisition in Austin’s Rapidly Expanding Georgetown Submarket
Machine Investment Group (MIG) has recently expanded its real estate portfolio with the strategic acquisition of Rise 120, marking a noteworthy foray into the burgeoning Georgetown submarket of Austin, TX. These newly constructed multifamily units, coupled with a significant retail space, bolster MIG’s presence in one of the nation’s fastest-growing cities.
The Rise 120 property, boasting 227 multifamily units complemented by 15,000 square feet of retail, is a testament to the accelerating growth and allure of the Georgetown area. The convenient location merely 2 minutes from I-35 grants residents seamless access to key destinations such as Downtown Austin, as well as proximity to substantial employment hubs like Dell and Apple. Given Georgetown’s ranking as the nation’s fastest-growing city from 2021 through 2023 and the Austin MSA’s capacity to draw an affluent demographic, the acquisition appears both timely and promising.
With this acquisition, MIG capitalizes on a fortuitous situation, securing the property at a value 30% below the developer’s basis. This move is attributed to a temporary disequilibrium in the capital markets and an oversupply that MIG forecasts as fleeting. By investing additional capital into Rise 120, MIG plans to further enhance the property through premium amenities, thereby accelerating the lease-up process. The addition of distinctive luxuries such as a golf simulator and cold plunge is expected to reinforce the property’s competitive edge.
Retail leaseups will also gain attention from MIG, with financial incentives like tenant improvement allowances aimed at nurturing the commercial ecosystem of Rise 120. The retail component notably sets the property apart from its competition, presenting a unique advantage.
Machine Investment Group’s Co-Founder and Managing Partner, Eric Rosenthal, encapsulated the firm’s strategic approach, saying, “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.” His outlook reflects confidence in the region’s resilience and long-term growth prospects.
Completing the acquisition in collaboration with Alta Real Estate Partners, MIG fortifies its investment strategy and signals a commitment to fostering enduring value in the multifamily real estate segment. With Walker & Dunlop representing the seller, this transaction underscores the dynamic nature of real estate investment and the strategic opportunities that arise even during periods of market dislocation. The proactive measures designed to differentiate and uplift Rise 120 speak volumes about MIG’s innovative approach to revitalizing properties and optimizing investment performance in the multifamily housing sector.