REIT Pays $45M for 256-Unit Austin Community
- Jan 09, 2017
Austin, Texas—The 256-unit Canyon Resort at Great Hills located in Austin was acquired by Steadfast Apartment REIT III Inc., better known as STAR III, for $44.5 million, roughly $173,830 per unit. The transaction marks the REIT’s third acquisition.
“We believe that Canyon Resort will be another great addition to our growing portfolio of mid-tier properties,” Ella Neyland, president of Steadfast Apartment REIT III, said in prepared remarks. “Its unique location at the edge of a nature preserve gives it a secluded feel, while still providing easy access to the surrounding metropolitan area-features we believe are beneficial for strong occupancy, rent growth and value appreciation.”
Canyon Resort, located at 8701 Bluffstone Cove, encompasses 12 three-story buildings with one-, two- and three-bedroom garden-style apartment homes that average 983 square feet. At the time of the transaction, the community was 94.5 percent occupied, with in-place rents averaging $1,335 per month.
Common area amenities include a resort-style pool with sundeck, fitness center, barbecue area, business center, detached garage parking and hiking trails. Unit amenities feature 9-foot ceilings, washers and dryers and private balconies or patios. Furthermore, select units include fireplaces, hardwood flooring and attached garages.
According to Yardi Matrix data, roughly half of the units were recently renovated by the previous owner, The Connor Group of Ohio, and include an upgraded appliance package, tile backsplash and upgraded lighting fixtures. As part of its Value Enhancement Strategy, STAR III plans to upgrade the remaining ones to include quartz countertops, new plumbing fixtures and vinyl flooring.
Built in 1997, the community is situated close to The University of Texas at Austin, The Domain and The Arboretum. The business campuses of Apple, IBM, National Instruments, BMC Software, Time Warner Cable and the Seton Northwest Medical Center are within a 10-minute drive.
Image courtesy of Yardi Matrix