Austin Apartment Community Changes Hands in $35M Deal
- Dec 14, 2012
The Dayton-based Connor Group recently purchased 290-unit River Oaks—a 40-acre gated apartment community located at 6607 Brodie Ln.—for $34.6 million. Built in 1997, the property includes amenities like a pool, spa, volleyball court and basketball court.
The multifamily deal marks the second acquisition in Austin by the real estate investment firm. The Connor Group first entered the Austin market in August, with the purchase of Camden South Congress—a 253-unit multifamily property subsequently renamed Cityview at SoCo, according to the Dayton Business Journal.
Quoting Larry Connor, managing partner at the Connor Group, the Austin Business Journal reports that the real estate company is bullish on the Austin multifamily market, and that more acquisitions are in the works. The investor is looking to raise circa $100 million in the next year to finance more acquisitions.
In a recent market report, Marcus & Millichap analysts noted that job growth across Austin metro was creating high demand for apartments, and that vacancy had dipped to the lowest point in over a decade. Marcus & Millichap forecasts that, by year’s end, vacancy will fall 90 basis points to 4 percent on a net absorption of 3,600 units, as illustrated in the chart on the left.
Moreover, due to the low vacancy rates, asking rents jumped 3.8 percent during the last year to $911 per month.
Photo rendering of River Oaks, courtesy of www.riveroaksaustin.com
Chart courtesy of Marcus & Millichap Research Services
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