(Read more on the multifamily market.)

AUSTIN-A private investor from Redondo Beach, CA has taken possession of the class A 224-unit Saddle Creek Apartments in an off-market transaction. Sources uninvolved with the transaction say the six-year-old asset traded for slightly north of its $16.8-million assessment by Travis County.

The buyer acquired the 92%-leased complex at 10801 Old Manchaca Rd. from Orix Real Estate Capital Inc. in Chicago. Patton Jones, sales director with Apartment Realty Advisors’ Austin and San Antonio offices, says Orix Real Estate acquired Saddle Creek a year and a half ago as a value-add project and it was ready to sell because it had reached the necessary business goals.

Saddle Creek was Orix’s only multifamily holding in the Austin market. “They purchased it, invested capital to spruce it up, achieved their turnaround plan, then sold it,” Jones says.

Jones tells GlobeSt.com that the buyer refinanced some holdings in Redondo Beach to invest in a fast-growing area of Texas, but he doesn’t think the buyer is after anything more. “I got the impression this was something of a diversification plan for him,” he adds.

Jones says South Austin is a submarket that is starting to take off, partly because of its proximity to Downtown and partly because of the growth of the Interstate 35 corridor. Jones says if people are looking for slightly less expensive rents than what they might find in the CBD, South Austin is the place to go. “The rents Downtown are up to $1.80 per sf,” he points out. “The rents in South Austin are 95 cents per sf.”

Situated on 12.7 acres, Saddle Creek Apartments has a mix of one- and two-bedroom units, measuring from 626 sf to 1,087 sf. Rents run from $720 to $940 per month.

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