Providence Enters Austin With 576-Unit Buy
The asset previously traded as part of a $311 million portfolio deal.
Providence Real Estate has acquired Beck at Wells Branch, a 576-unit multifamily asset in Austin, Texas, marking its entry in the metro. Electra America and Ascenda Capital previously owned the property, Yardi Matrix data shows.
Beck at Wells Branch, formerly Hyde Park at Wells Branch, traded before in 2019 as part of a six-property, $311 million portfolio deal, according to the data provider. Back then, the community became subject to a $55.3 million Freddie Mac loan originated by Lument with a 3.9 percent interest rate. The note was set to mature two months ago.
The duo engaged in a $4 million capex plan following the 2019 acquisition targeting unit interiors and exterior amenities. Providence plans to implement another value-add program with further improvements and upgrades to both interiors and exteriors.
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Comprising 25 three-story garden-style buildings, Beck at Wells Branch encompasses one- to three-bedroom floorplans averaging 963 square feet. Amenities include two swimming pools and a fitness center, as well as a resident lounge.
The 1999-built property is more than 4 miles north of The Domain, an area often described as Austin’s second downtown on account of its high density of office, retail and residential space. Employers such as Dell, Apple, Samsung, NVIDIA, Meta and Amazon operate on average within 8 miles from the community.
Providence debuted in 1985. Its principals have acquired more than 65,000 units with a value north of $7.5 billion. Two months ago, the company made another Sun Belt acquisition with the purchase of The Preserve at Tampa Palms, a 378-unit in Tampa, Fla.
Austin continues attracting new and old investors alike
Several of the tightest rental markets across the Sun Belt exhibited signs of recovery, including Austin, where advertised rents increased month-over-month in July, according to a Yardi Matrix report. This suggests that competitive pressures may be softening as deliveries dry up.
Another company that made its market debut earlier this year is Virga Capital. The firm acquired a 258-unit property in the northeast Austin suburb of Pflugerville, Texas. JPI also reentered the metro after a decade-long hiatus by acquiring a 9.3-acre site upon which the firm will develop a 342-unit project.
