NKF Arranges Sale of 3 TX Assets in 2 Deals

By
2 min read

All three assets, totaling 905 units, are located in south Austin. Farmhouse is a core luxury community, while Estates at Southpark Meadows and Terraces at Southpark Meadows are value-add properties.

Newmark Knight Frank has arranged two transactions comprising 905 units across three properties in Austin, Texas. All three assets—Farmhouse, a core 235-unit luxury community, as well as Estates at Southpark Meadows and Terraces at Southpark Meadows, two value-add projects totaling 670 units—are located in south Austin. Vice Chairman Patton Jones of NKF’s Multifamily Capital Markets represented the sellers in both deals.

The Estates & Terraces

Atlanta-based BVT Equity Holdings sold the properties in an off-market transaction to another Atlanta firm, Cortland Partners. Both were built in 2009 and border the Southpark Meadows shopping center.

The Estates is a 22-building, 426-unit community covering nearly 20 acres at 10001 S 1st St. The unit mix consists of one- to three-bedroom floorplans averaging 879 square feet. Common-area amenities include a fitness center, a business center, a clubhouse, two swimming pools and 878 parking spaces.

The Terraces is a 10-building, 244-unit property which also occupies nearly 20 acres at 10101 S 1st St. Units, ranging from one- to three-bedroom floorplans, average 926 square feet and feature vaulted ceilings, dual-pane glass and private balconies/patios. Community amenities include a fitness center, a business center, a clubhouse, two swimming pools, two spas and 510 parking spaces.

“We rarely see the combination of an off-market, value-add portfolio transaction. It further cements the strength of our multifamily market and the eagerness of investors to stake their claim in Austin,” Jones said in a prepared statement.

Farmhouse

The six-building, 235-unit luxury property is spread across more than 7 acres at 10801 S IH35. Ardent Residential sold the asset to The Ergas Group for an undisclosed amount, but according to Yardi Matrix data, the sale was subject to a 10-year loan in the amount of $25.5 million funded by Fannie Mae, with an annual interest rate of 4.3 percent.

The unit mix at the garden-urban community comprises one-, two- and three-bedroom floorplans averaging 855 square feet. Common-area amenities include a fitness center, a business center, a clubhouse, a swimming pool and 390 parking spaces.

“Farmhouse filled a need in south Austin for contemporary, luxury living on the periphery of downtown,” Jones added. “The asset attracted multiple offers and ended up trading to a foreign capital source, signaling the strength of the south Austin submarket.”

“The south Austin submarket is considered one of the strongest suburban submarkets due to multiple transportation arteries including IH-35, South Congress, South Lamar and South First,” Jones said. “Renters not only benefit from being close to Austin’s central business district but also nearby Buda, Kyle, San Marcos and San Antonio.”

Images courtesy of Newmark Knight Frank

You May Also Like

The latest multifamily news, delivered every morning.


Latest Stories

Like what you're reading? Subscribe for free.