- Red Summit Partners acquired The Ellington, a 266-unit apartment community in West Plano’s Preston Park/Legacy corridor, with financing from Starwood and debt arranged by Newmark.
- The firm plans a 36-month capital improvement program to complete unit renovations, upgrade amenities, and reposition the 1997-built property to a Class A standard.
- The acquisition reflects continued investor interest in well-located Texas multifamily assets with renovation upside and limited replacement competition.
Red Summit Partners has expanded its Texas multifamily portfolio with the acquisition of The Ellington, a 266-unit apartment community in West Plano’s Preston Park/Legacy corridor. The Dallas-based investment firm plans to execute a multi-year value-add strategy aimed at upgrading the nearly three-decade-old property while capitalizing on continued economic growth in one of North Texas’ most established employment hubs.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Why West Plano Stands Out
The Ellington was built in 1997 and features an average unit size of 1,114 square feet, with 59% of the community consisting of townhome-style apartments with attached direct-access garages. According to Red Summit, that product type is no longer economically feasible to build in West Plano because of higher land values and construction costs, making the asset difficult to replace.
The Details
Senior acquisition financing came from Starwood, while Newmark arranged the debt financing and represented the seller in the transaction. Previous ownership renovated roughly half of the apartment interiors to quartz-level finishes and updated the leasing center before pausing further investment amid rising interest rates. Red Summit plans to invest significant capital over the next 36 months to complete interior renovations, upgrade landscaping and common areas, expand amenities, and reposition the property to a Class A standard.
A Value-Add Play in an Established Market
Red Summit’s investment thesis centers on both physical improvements and favorable local demand drivers. The firm pointed to the planned relocations of AT&T and the Dallas Stars as catalysts expected to strengthen housing demand in West Plano. Executives also highlighted the property’s oversized floor plans, mature tree canopy, and attached garages as features that would be difficult to replicate through new development.
Why It Matters
Value-add multifamily opportunities remain attractive in mature, high-barrier submarkets where replacement costs continue to climb. Red Summit believes institutional-quality asset management, operational improvements, and targeted capital investments will strengthen resident retention and support future rent growth as the repositioning is completed.
What’s Next
The renovation program will roll out over the next three years, with Red Summit completing interior upgrades while modernizing the property’s amenities and common areas. The Dallas-based firm, whose partners have collectively acquired more than 100,000 apartment units and overseen renovations of more than 500,000 units nationwide, intends to continue pursuing value-add multifamily investments across its core Texas markets.
