Austin Keeps Growing and Investors Keep Calling
The metro added 40,000 jobs last year which continued to boost construction, with rents increasing 4%, fueling multifamily acquisitions in the vein of Beck at Wells Branch in northern Pflugerville-Round Rock.
AUSTIN, TX—Hyde Park at Wells Branch is a 576-unit complex that was built in 1999. The property is comprised of 25 three-story buildings situated on a 29.3-acre parcel.
A Freddie Mac conventional multifamily loan in the amount of $55.24 million will finance the acquisition of the garden-style multifamily property. The financing, facilitated by Hunt Real Estate Capital, is a seven-year fixed-rate loan with an initial interest-only period of three years.
“Hyde Park at Wells Branch is located in a strong job growth market that consistently supports demand for multifamily housing with competitive amenity packages,” according to Deborah Proctor, vice president at Hunt Real Estate Capital.
The borrower is a joint venture with an equity investor and Joe Lubeck, CEO of American Landmark, as the managing partner and Christine DeFilippis as CFO.
“Joe is a seasoned Freddie Mac select sponsor that is the founder of ELRH Investments LLC as well as the original founder of Landmark Residential,” noted John Beam, managing director at Hunt Real Estate Capital. “This is our 16th financing with Joe. He has overseen four successful portfolio builds totaling over 100,000 units with a value in excess of $3 billion in the last 15 years and currently owns a real estate portfolio that includes 54 properties totaling over 16,500 units.”
The property was part of a portfolio purchase and the borrower plans to invest more than $4 million in capital upgrades to improve the property, Beam explains.
“The previous owner had been renovating units on turn prior to acquisition and 198 units still need to be renovated,” he says.
Unit interiors will be upgraded with washer/dryers, upgraded cabinets and lighting/plumbing fixtures. Site amenity improvements will include enhancements to the clubhouse, new pool furniture and landscaping upgrades.
“The project now known as Beck at Wells Branch is in the northern Pflugerville-Round Rock submarket which has greatly benefited from the exceptional growth of the Austin market,” Beam tells GlobeSt.com. “Austin continues to be one of the more balanced economies in the nation supported by technology, government, education, young talented workforce and a unique Texas life style. The impressive announcement of Apple’s move to northwest Austin is the latest Silicon Valley relocation. The growth of 40,000 jobs has fueled construction however the demand has kept pace and rents actually increased 4% last year. The Austin region continues to be one of the most sought-after market by investors, such as our sponsor.”