Presidium Expands Its Footprint in Texas with New Multifamily Acquisition
- Apr 29, 2016
Austin, Texas—Presidium Group LLC added to its extensive Texas portfolio by acquiring Balcones Club, a 312-unit multifamily community in Northwest Austin, it’s 17th purchase in the city in the last four years and second in the immediate area (after Laurel Woods, located just half a mile away). Common amenities include a fitness center, two swimming pools and a spa, according to the Yardi Matrix Index. The company closed the deal after coming across the property on an off-market basis.
“This is a very unique asset that will be a great addition to our Austin portfolio”, said Nick Dyer, Presidium’s COO. Balcones Club, situated at 9218 Balcones Club Drive, will go through a complex value-add upgrade, including new faux wood flooring, new fixtures, new appliances, new countertops, and a two-tone paint scheme for the interior, but also a new branding theme, modernizing the leasing center and fitness center, enhancing the pool area, and enhancing the building exteriors.
According to Yardi Matrix, the sale price was $37.1 million, though the amount remains unconfirmed and was subject of a $27.8 million loan held by Fannie Mae. Also, current occupancy at Balcones Club exceeds 96 percent, as the average rent is $1,177 per unit, the result of a steady increase in recent years.
Presidium’s has a dynamic activity on the Austin market, as the company received the development permits for its East Riverside project, a 354-unit multifamily community spanning across nine acres and scheduled to break ground this year in one of Dallas’ most active submarkets, according to Yardi Martix.
Recent market data collected by Yardi Matrix shows that Austin has grown into one of the top secondary markets in the U.S. and is an attractive destination for businesses, entertainment and builders. The process has been triggered by employment growth which is well above the national average, while technology, education, health care and tourism are the metro’s economic drivers. Another key factor in Austin’s real estate development is population growth, which has recorded a 12.5 percent increase since 2010. The total transactions value in Austin reached $1.7 billion in 2014.
Presidium is a large multifamily owner and operator in Texas, having acquired and repositioned about 6,000 apartment units in the state’s major markets since 2013. Recently, the company purchased two other multifamily communities—Villas on Forest Springs in Dallas and Willow Cliff Lakeshore Apartments in Oklahoma City.
Image courtesy of Yardi Matrix