AUSTIN-A Houston-based merchant builder has sold the just-completed 76-unit Sterling University WestCamp to JPI. The 98%-leased complex has traded hands for close to the $24-million ask or slightly less than a 6% cap rate.
Sterling University WestCamp, situated on a little more than one acre at 2704 Rio Grande St., was one of the first projects to break ground in 2005 following the City of Austin's University Neighborhood Overlay ordinance, which lifted restrictions on building heights. "Nothing was built there for 30 years before that, but after the ordinance passed, developers came in and started buying sites," says Patton K. Jones, sales director with Apartment Realty Advisors' office for Austin and San Antonio.
Jones, who represented seller Dinerstein Cos., tells GlobeSt.com that the mid-rise complex attracted six quality offers. Ultimately, the Irving-based JPI beat out the other bids because of its familiarity with the market.
Jones adds JPI, which is planning to break ground sometime in 2007 on similar housing across the street, aggressively pursued Sterling University WestCamp, more than likely because of its upcoming project. "They know the area and they feel strongly about it and its future growth," he says. "There are also obviously some economies of scale on the management side."
Sterling University WestCamp has a mix of two-, three- and four-bedroom units, which range from 894 sf to 1,698 sf. Monthly rents go from $1,600 to $2,900 per apartment.
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