Machine Investment Group Acquires Rise One Twenty in Georgetown to Accelerate Lease Up and Retail Activation
Machine Investment Group (MIG) closed an off-market acquisition of Rise 120, a newly built multifamily property in Georgetown, Texas. The asset includes 227 rental units and about 15,000 square feet of ground-floor retail, with construction completing in Q1 2024. Rise 120 is located two minutes from I-35, offering access to Downtown Austin, Round Rock and major North Austin employment centers including Dell, Apple and the Domain.
MIG acquired the property at approximately 30 percent below the developer’s basis, a price outcome the company attributes to capital markets dislocation and a temporary period of oversupply. MIG intends to accelerate lease-up through additional capital and amenity enhancements. Planned upgrades slated to differentiate the property include a golf simulator, sauna and cold plunge, complementing existing on-site amenities such as a pool, fitness center, resident lounge, grill area and dog park. The property is also unique within its competitive set for having retail space; MIG plans to support retail lease-up with tenant improvement allowances.
Georgetown has been a notable growth market within the Austin MSA. The U.S. Census Bureau ranked Georgetown as the fastest growing city in the nation from 2021 through 2023. MIG cited those market dynamics as part of its thesis for the acquisition.
“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,” said Eric Rosenthal, Co-Founder and Managing Partner of Machine Investment Group.
MIG completed the transaction in partnership with Alta Real Estate Partners. Walker & Dunlop represented the seller.
This transaction illustrates an investment approach focused on sourcing off-market opportunities in select submarkets, acquiring newer product at discounted pricing during market dislocation, and investing in amenities and retail activation to accelerate leasing and resident retention. Multifamily Leadership will continue to monitor how capital markets and local employment trends influence leasing trajectories and investor activity across high-growth MSAs.