DACH investor drawn to Round Hill’s new US multifamily asset

London-headquartered asset management company Round Hill Capital has acquired a 445-unit multifamily apartment community in Dallas, Texas. The acquisition was made on behalf of Round Hill Capital’s US Residential Income and Growth Fund (USRIG) which provides access to defensive, garden-style multifamily investments in the Sunbelt region of the US for European institutional investors.

The asset, Cortland Allen Station, was acquired when USRIG held an additional closing which attracted new capital from an unnamed “leading European institutional investor” from the DACH region.

The USRIG Fund has now completed three multifamily deals in the US totalling approximately $250 million (€213 million) in Texas, North Carolina and Georgia. Round Hill said the fund is proving attractive to European investors who like the stability of multifamily assets in high-growth southern US markets.

Cortland Allen Station was built in 2019 and comprises 445 moderately priced multifamily units as well as amenities which include co-working spaces, an entertainment lounge, fitness centre, swimming pool and games room.

Dallas outpacing the national employment rate

Round Hill Capital said in a statement that the Dallas-Fort Worth metropolitan area has outpaced the national employment growth rate over the past decade, adding over one million new residents between 2010 and 2018.

“The current economic climate is encouraging a shift of capital toward defensive real estate assets across our investor base of high profile European institutional investors,” Round Hill Capital’s head of Americas, senior managing director Rob Reiskin said. “The pandemic has also accelerated a growing trend over the past 10 years, as both residents and employers relocate from city centre locations to lower density, more affordable destinations, offering a higher quality of life.”