Buchanan Capital Partners, “BCP”, an Austin-based, zero-fee commercial real estate investment firm, announced the recent closing of three new multifamily investments; two ground-up developments located in New Braunfels, Texas, and Colorado Springs, Colorado, and the off-market multifamily acquisition of Crenshaw Grand Apartments in Pasadena, Texas.
In the two developments, BCP was the sole Joint-Venture equity partner with Alliance Residential Company and The Garrett Companies. Both firms are vertically integrated, national developers.
With Alliance, the joint venture is developing a 390-unit apartment community in New Braunfels, a rapidly growing Texas market along I-35 between San Antonio and Austin.
With Garrett and Telis Group, the joint venture is developing a 196-unit apartment community in Colorado Springs with quick access to the growing downtown employment corridor, as well as outdoor recreation such as Pikes Peak and Garden of the Gods.
“In uncertain times, there is a flight to quality which is why we are especially excited about these three investments as each achieves our primary goal of a low-cost basis. We firmly believe the acquisition was purchased at a 25% discount to replacement cost and both developments’ total cost basis will be 20% less than their competitors,” said Keith Buchanan, Founder of Buchanan Capital Partners. “We are thrilled to be in a position to transact on high-quality opportunities in strong growth markets, while mitigating risk via our cost basis.”
Buchanan concluded, “2024 has been a turbulent year in the real estate markets, but with the confidence of our investors we have been able to play offense while most have been playing defense. We credit the confidence from our growing investor base to our zero-fee, mid-teen preferred return offerings, which forces us to be highly selective when identifying superior risk-return opportunities, otherwise we receive no compensation.”
Buchanan Capital Partners, based in Austin, TX, is a performance-based commercial real estate investment firm focused on providing consistent, superior risk-adjusted returns. Performance-based means BCP collects no fees, and their investors are paid first, in full, before they receive any compensation. BCP pursues strategies including direct acquisitions across product types and providing JV equity for opportunistic investments. BCP’s Principal has a proven 28+ year track record of successful investing across all commercial real estate product types primarily in major Texas metros.
