CDT Forms JV to Buy 452-Unit Asset for $70M
- Jul 04, 2019
The Community Development Trust, a national investor in affordable housing, has partnered with the Housing Authority of the City of Austin and its nonprofit affiliate, the Austin Affordable Housing Corp., in a $70 million venture to acquire a 452-unit community in southwest Austin, Texas.
The effort is supported by the National Housing Trust and The Kresge Foundation through its High Opportunity Partner Engagement program that aims to increase access to affordable housing in areas of high opportunity with strong public schools. The HOPE Fund provided $4 million for the CDT-AAHC joint venture. The Bridge at Asher Apartments acquisition is CDT’s fourth investment with AAHC/HACA. CDT and AAHC now jointly own 1,716 units in Austin, having created affordability for at least 858 households through these ventures.
The Bridge at Asher Apartments is a 23-building property completed in 2003 on a 56-acre site at 10505 S. Interstate 35 Highway. According to Yardi Matrix data, Castle Lanterra Properties previously owned the property. The New York-based investor had acquired it in 2015 for nearly $52 million.
The unit mix at the community includes one- to three-bedroom floorplans averaging 896 square feet that feature private balconies/patios, vaulted ceilings and outside storage. Common-area amenities include a fitness center, a business center, a clubhouse, two swimming pools and two spas, laundry facilities and 900 parking spaces.
While under Castle Lanterra Properties’ ownership, the community underwent a multi-million dollar strategic capital improvement plan. CLP rebranded the asset, overhauled the clubhouse and leasing office, converted a former laundry room to expand the fitness center, upgraded the pools and added new poolside seating areas and all buildings had a full exterior repaint. In addition, the former owner revamped 142 of the units, which resulted in a consistent rent increase.
“In the four years that CLP owned Asher, we completely repositioned this asset by introducing Class-A amenities and high-end unit finishes. Combined with its incredible location in a unique, protected wooded setting, with convenient access to major roadways, retail and employment centers—Asher was able to remain competitive in a submarket that has seen significant new deliveries these past several years,” Castle Lanterra Properties Founder & CEO Elie Rieder told Multi-Housing News. “We take great pride in our ability to elevate our residents’ standard of living through capital improvements and high service standards. The steady growth in performance we were able to achieve as owners culminated in a very favorable exit.”