Real estate investment firm Domain Communities has ventured into Austin, Texas, by snapping up a 300-unit apartment property in the Sunset Valley area from Independence Realty Trust. The 17-building community, Iron Rock Ranch, is located at 1215 Slaughter Lane.
The property, which traded for an undisclosed price, was marketed by Charles Cirar, Michael Wardlaw, and Colin Cannata of CBRE’s Central Texas Multifamily Team. Financing was provided by MF1 Capital and arranged by John Fenoglio with CBRE Capital Markets. The Tipton Group will manage the community.
Independence Realty Trust acquired the asset for $35.3 million in early 2015, according to Yardi Matrix. Built in 2002, Iron Rock Ranch features 84 townhomes and 216 garden-style apartments across 22 acres of land. Units range in size from one to three bedrooms and amenities include a fitness center, a clubhouse, three swimming pools and 700 parking spaces, including covered parking.
The property’s new ownership and management team plans to make upgrades to the units and common areas. Domain Communities acquired the asset as a part of a targeted value-add strategy that could include a longer-term hold. The investment company indicated that it views the core asset as a hedge against market volatility.
Expanding its domain
Domain Communities also owns properties elsewhere in Texas, Arizona and Georgia. This past April, the company acquired The Villas of Josey Ranch, a 198-unit apartment community in Carrollton, Texas, near Dallas. More recently, Domain Communities offloaded the 368-unit Palm Canyon Apartment Homes in Tucson, Ariz., for $40.3 million.
Sunset Valley is a 1-square-mile city southwest of downtown Austin and surrounded on all sides by the Texas capital. The primarily rural residential neighborhood has an estimated population of 679, according to the U.S. Census Bureau.
Developer Oden Hughes completed Lenox Springs, a 400-unit community in Sunset Valley, last year. The developer is currently working on the project’s second phase, which will add 260 units to the property at 10500 South Interstate 35 Frontage Road, 2 miles southeast of Iron Rock Ranch.