AUSTIN—Philadelphia-based Resource Real Estate Opportunity REIT Inc. (Opportunity REIT), a non-traded real estate investment trust sponsored by Resource Real Estate Inc., has acquired Woodmoor Apartments, a 208-unit class B, 97-percent-occupied apartment complex in south Austin.

“We think Austin represents a terrific market,” Kevin Finkel, president and COO of Opportunity REIT, told GlobeSt.com.

So much so that it's Resource Real Estate's third multifamily acquisition in Austin; it also owns Bent Oaks apartments in northwest submarket and the Arboretum-area Woodhollow.

What particularly stood out for Finkel about Woodmoor is its value-add possibilities.

“There's a real lack of offerings in Austin, in that there's lots of brand-new high-end class A properties, but this one is sort of in the middle,” he says.

To elevate the asset, the REIT will employ a full-scale renovation to the interior of units, adding washers and dryers, stainless-steel appliances, faux-wood floors, granite countertops and new cabinets. The exterior of the community will also get an upgrade, with a re-do to the leasing office, fitness and business centers, swimming pool and the addition of outdoor kitchens. Finkel says all renovations should be completed in the next 24 months. As a result, rents will slightly increase to the $1,500-$1,600 range.

For Finkel and Opportunity REIT, Austin is attractive for numerous reasons. Most significant is that the city's young, creative work force is drawing employers to the area. Finkel says last year alone, Austin created 34,000 new jobs.

“We really like being in areas like Austin,” he says. “It's a fun, funky city with great day-life and nightlife. [This asset,] located in the 78704 zipcode is in one of the most eclectic of the submarkets, and that's saying a lot in Austin.”