BSR Expands Austin Presence With $104M Buy
- Aug 30, 2019
BSR Real Estate Investment Trust of Little Rock, Ark., has acquired two adjacent Class A garden-style communities in west Austin, Texas. The two assets, Cielo and Madrone, sold for a total of $104.4 million.
As per Yardi Matrix data, the previous owner is Toronto, Canada-based Starlight Investments, which acquired the two properties in 2016 for nearly $87 million. Following the deal, Starlight combined and rebranded the communities as Madrone Apartment Homes.
Cielo and Madrone total 554 units in 34 buildings and are spread across more than 78 acres at 3499 Ranch Road 620 S. in Austin’s Oak Hill submarket. Specifically, Cielo is a 26-building, 326-unit property built in 2014 on nearly 38 acres, while Madrone totals 228 units in eight three- and four-story buildings spread across nearly 41 acres and was completed in 2015. BSR counts them as its second and third properties in the Texas capital, where it now owns 840 units.
The unit mix at the recently acquired properties includes one- to three-bedroom floorplans ranging from 627 to 1,607 square feet and feature washer and dryers, high ceilings, private balconies/patios and outside storage. Community amenities include a fitness center, a business center, two swimming pools and 831 parking spaces.
The recent acquisition brings the BSR’s portfolio to 47 garden-style communities totaling 10,268 units. The REIT also plans to raise another $50 million to increase the company’s cash flow and acquisition capacity.