Investor interest in multifamily assets remains robust, with New York-based real estate investment firm Castle Lanterra Properties buying up the 529-unit Residences at the Triangle in central Austin, Texas, for $129 million. The seller was The Dinerstein Cos., which had purchased the asset in 2017.
The apartment property forms part of The Triangle, a six-building complex built between 2006 and 2008 that features 111,000 square feet of local and national retailers along with commercial space. Located at 4600 W. Guadalupe St., the apartments are 94.5 percent occupied, according to Yardi Matrix.
Castle Lanterra said it plans to invest substantially in upgrading the homes to take advantage of strong demand for Class A apartments in the city, driven by a dearth of new supply. The three- and four-story property features various floorplans, from studios to three-bedroom units, with 9- to 11-foot ceilings, granite or quartz countertops and private balconies. Amenities include a fitness center, common kitchen, conference rooms and thee swimming pools.
Located north of the downtown core in the Hyde Park neighborhood, The Triangle is nearby the University of Texas, Dell Medical School, the U.S. Army Futures Command and the new Texas Health and Human Services headquarters, slated for completion this year.
Austin rents contract
The pandemic appears to have weighed on apartment rents in Austin. The average rent in the metro area contracted 0.1 percent to $1,389 on a trailing three-month basis through April, according to the latest report by Yardi Matrix. Austin gained 27,200 jobs in the 12 months ending in March, growing 3.3 percent year-over-year.
Castle Lanterra has sold several properties in the Austin area in recent years, including Villas Tech Ridge, a Class A, 350-unit community that was transferred to New York Life Insurance Co. in February. The 12-building property is located at 13838 The Lakes Blvd. in Pflugerville.