Migration North Dictates Additional Quality Rentals

Melograno at Teravista has been acquired by Bascom Group.

ROUND ROCK, TX—With the growth of the Austin MSA, North Austin continues to expand as STEM businesses look for space, affordability and quality of life outside the urban core. This northern expansion and limited supply will continue to strengthen multifamily fundamentals. James D’Argenio , principal for Bascom Group LLC tells GlobeSt.com: “As companies move north in Austin, the demand for quality rental housing continues to increase in Round Rock and surrounding cities. Modernizing existing properties is an efficient way to meet this demand for upscale apartment communities.” Offering residents convenient access to North Austin’s major employment corridors, Melograno at Teravista , a multifamily asset with more than 300 units located in the growing city of Round Rock, has been purchased by the Bascom Group LLC. The purchase price was undisclosed. “We acquired a well-built, well-located asset benefiting from a great school system and a stable resident base. Although recently built, the interiors offer an upgrade opportunity when compared to newer, more expensive apartments,” says D’Argenio. The property consists of 19 residential buildings and one stand-alone leasing center spread across 17 acres. The unit mix is comprised of 51% one bedroom units, 40% two bedroom units and 9% three bedroom units. Community amenities include a clubhouse, fitness center, swimming pool, barbecues, picnic areas and a pet park. “North Austin and the surrounding markets continue to show strong apartment fundamentals and household economic statistics relative to other Texas markets. The property, along with the neighboring properties, are all high 90s occupancy with healthy resident analytics,” adds Tony Ferrell , director of portfolio operations for the Texas region of Bascom Group. Debt financing was arranged by De’On Collins, John Brownlee and Charles Halladay of HFF.  Sean Sorrell with HFF represented the undisclosed seller in the transaction.