Machine Investment Group Acquires Rise One Twenty in Georgetown At Thirty Percent Below Basis

Machine Investment Group completed an off-market acquisition of Rise 120, a newly built multifamily property in Georgetown, Texas. The asset includes 227 rental units and 15,000 square feet of ground-floor retail and delivered in Q1 2024. The deal underscores continued investor interest in targeting new construction assets acquired at opportunistic pricing in select submarkets.

Rise 120 sits roughly two minutes from I-35, providing direct access to Downtown Austin, Georgetown, Round Rock, and major North Austin employment centers such as Dell, Apple, and the Domain. Georgetown was the fastest growing city in the nation from 2021 through 2023, according to the U.S. Census Bureau, a trend that has outpaced the broader Austin metropolitan area for more than a decade.

MIG acquired the property at approximately 30 percent below the developer's basis, a gap driven by recent capital markets dislocation and a temporary oversupply environment. The firm plans to accelerate lease-up through targeted capital improvements that will distinguish the community from its competitive set. Planned enhancements include a golf simulator, sauna, and cold plunge. Existing on-site amenities include a pool, fitness center, resident lounge, grill area, and dog park.

Rise 120 is the only property in its competitive set that includes retail. MIG intends to support retail lease-up with tenant improvement allowances to activate the ground-floor program and enhance mixed-use appeal. Local market dynamics are expected to support residential rent growth over MIG’s investment horizon.

"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 acquisition in partnership with Alta Real Estate Partners. Walker & Dunlop represented the seller in the transaction. For operators and capital partners, the transaction highlights how selective acquisitions in high-growth submarkets combined with amenity-led leasing strategies and retail activation can be employed to capture long-term value during periods of market dislocation.