Austin MSA Multifamily Asset - 15% Preferred Return

Asset type: Apartment · Location: Georgetown, Texas

THE NORTHLINE COLLECTION represents a rare and highly compelling opportunity to invest in a 286-unit, two-property Class A+ multifamily portfolio located in one of Austin’s most desirable and fastest-growing suburban markets. This investment is the result of Elysian Real Estate Group’s longstanding market relationships, and reputation as an experienced, hands-on operator—and it offers our investors the ability to step into a priority equity position under uniquely favorable terms. This opportunity was born from inefficiencies in the capital and debt markets, which have created stress for the current ownership group. In 2021, Novak Brothers (GP) and Trinity Investors (LP) partnered to develop two luxury multifamily assets: Rise 120 – a 227-unit wrap-style apartment complex designed to deliver lifestyle-driven, Class A+ rental community Summit Brownstones – a 59-unit luxury townhome community targeting a condo conversion strategy To finance the development, the sponsor utilized adjustable-rate construction and bridge financing, modeling their risk with a capped interest rate assumption of 6%. However, when interest rates surged well beyond that threshold and new multifamily supply in Georgetown and surrounding areas exceeded expectations, the partnership faced the following challenges: Debt service obligations increased dramatically, straining operating cash flow Pro forma rents dropped from $1.40/SF to $1.00/SF due to market oversupply Occupancy stalled, with stabilization slower and more costly than originally projected Now, with debt maturities looming and property tax obligations outstanding, the partnership has asked Elysian Real Estate Group to step in—not just with capital, but with leadership, vision, and execution. Elysian’s investment will come in as a priority equity position, senior to all existing partners and immediately behind the senior & pref debt, offering first-dollar distributions and a 15% preferred return with a 1.65x return hurdle before profit-sharing begins for the initial investors. Our repositioning strategy includes: Rise 120: Repositioning the asset as a social, retail-integrated, lifestyle community, enhanced by curated amenities, upgraded interiors, and activation programming designed to accelerate lease-up and drive rent growth. Summit Brownstones: Targeted condo conversion aimed at the 55+ lock-and-leave demographic, focusing on curated design, premium branding, and a community-first lifestyle offering. This creates the potential for early liquidity and accelerated capital returns within the first 12–15 months of ownership. Backed by our fully vertically integrated platform—with in-house asset management, construction, operations, and branding—Elysian is uniquely positioned to stabilize, reposition, and elevate this portfolio into market-leading assets. Our creative exit strategies, including condo sales, value-driven dispositions, and strategic portfolio exits, give us multiple paths to unlock value and maximize returns. This is more than an investment opportunity—it’s a moment to capitalize on short-term market dislocations with long-term potential. With a superior return structure, built-in downside protection, and a proven operator at the helm, the Northline Collection offers institutional-quality upside with early capital return potential and a clear path to value creation. This is the right opportunity, with the right partner, at the right time.