Top 10 Affordable Communities Delivered in Austin
- Aug 07, 2018
Booming tech hub Austin and its fast-paced job growth, up 3.5 percent year-over-year through April and more than double the 1.7 percent U.S. average, is a magnet for people in search of a sunny climate, career opportunities and plenty of entertainment options. More than 55,000 residents moved to Austin in 2017, while since 2013, nearly 232,300 residents have relocated here.
The housing market is feeling the pressure, with rents clocking in at an average of $1,323 in June, following tepid growth that came in at 1.3% year-over-yer, 160 basis points below the national rate. Furthermore, despite consistent supply additions—the development pipeline had nearly 19,500 units underway and another 51,000 units in the planning and permitting stages as of June—Austin is among the top 10 most under-supplied metros in the country. Land availability and construction costs are not as favorable as a few years back, further deepening the issue. Recent accelerated growth is taking its toll on residents, as affordability, congestion and other structural challenges arise.
The list below highlights the largest multifamily properties to have been delivered over the past 18 months and to feature at least an affordable housing component.
Eudaimonia Sober Living
Eudaimonia offers sober living homes and apartments in several locations throughout the country. This Austin property, reserved for men only, totals 54 units in four buildings spread across more than two acres at 7211 Northeast Drive in the Berkman submarket, and is owned by Matthew Gorman. The property was originally built in 1972 and completely renovated in 2017 with the help of two construction loans—a $3.08 million loan originated in 2015 by BancorpSouth Bank and a $485,000 loan funded by the same bank a year later. Residents started moving in in 2018 and pay a monthly rent that starts at $550 for a two-bedroom unit and up to $1,800 for the community’s Lone unit. Amenities at Eudaimonia include a fitness center, swimming pool, community room, media room, laundry facilities and 150 parking spaces.
The 120-unit property is owned and managed by Foundation Communities. The five-building asset is spread across 8.5 acres at 11015 Four Points Drive in the Anderson Mill submarket and was built using two construction loans: a $15 million loan funded by Wells Fargo Bank in 2016 and a $1.5 million loan self-financed by the owner. The unit mix encompasses one-, two- and three-bedroom apartments ranging from 830 to 1,300 square feet where rents vary between $740 and $1,235. Amenities include a fitness center, business center, clubhouse, basketball court, playground, laundry facilities and 222 parking spaces. The property is also pursuing LEED Platinum certification.
The 128-unit community is also environmentally friendly, having filed to achieve LEED Platinum certification. The property is located on seven acres in Cedar Park at 13635 Rutledge Spur and offers one- to three-bedroom units ranging from 775 to 1,302 square feet. Three construction loans were issued to fund its development: $8 million funded by Bank of America in June 2015; $2.4 million also from Bank of America in July 2015 and a $3.25 million loan self-financed by the owner, Foundation Communities. Rents range from $705 to $1,220 and the property includes units for at-risk/homeless families as part of the owner’s Children’s Home Initiative Program. Amenities include a fitness center, business center, community room, basketball court, playground, laundry facilities and 195 parking spaces.
A Ryan Cos. asset, the two-building, 194-unit community is situated on more than eight acres at 6725 Circle South Road in Pleasant Hill-West. The property was built with financing provided by both JPMorgan Chase ($6.7 million) and Freddie Mac ($17.2 million) and is subject to a 75-year unsubordinated net ground lease held by the Housing Authority of the City of Austin, expiring in 2090. The unit mix at Urban Oaks consists of one- to three-bedroom apartments ranging from 661 to 1,356 square feet for rents that vary between $913 and $1,255. Amenities include a fitness center, business center, community room, playground, swimming pool and 359 parking spaces.
Fairway Landings at Plum Creek
The 11-building, 216-unit community occupies more than eight acres at 510 Kohler’s Crossing in the San Marcos/Kyle submarket. The asset, owned by Pedcor Cos. was built with a $25.8 million construction loan originated by HUD, which amortized on a 40-year schedule and carries a note rate of 2.5 percent. The unit mix encompasses one-, two- and three-bedroom apartments ranging from 723 to 1,231 square feet. Rents start at $848 and go up to $1,221 per month. The amenity package includes a fitness center, business center, clubhouse, playground, swimming pool, laundry facilities and 246 parking spaces.
Harris Branch Senior
LDG Development’s 55+ active adult apartment community is spread across more than six acres at 12433 Dessau Road. It was built with a $23 million construction loan financed by HUD in 2015 and completed in July 2017. The unit mix features one- and two-bedroom apartments ranging from 734 to 969 square feet. Monthly rents start at $847 and go up to $1,015. Common area amenities include a fitness center, business center, community room, swimming pool, laundry facilities and 276 parking spaces.
Located on nearly 3.5 acres in the heart of Austin at 2604 Aldrich St., DMA Properties’ 240-unit LEED certified community benefits from Mueller’s shopping, restaurants and walking trails. The asset was built with a $33 construction loan financed by JPMorgan Chase and originated by Austin Housing Finance Corp. Additional funding was provided for the development: JPMorgan Chase ($5.2 million), Austin Housing Finance Corp. ($2 million) and DAM Properties ($2 million). The unit mix at the property includes studios and one- to three-bedroom apartments ranging from 524 to 1,223 square feet, while rents range from $854 to $2,300 per month. Amenities at Aldrich 51 include a fitness center, business center, club house, basketball court, swimming pool, laundry facilities and 311 parking spaces.
Tuckaway Apartment Homes
Another Pedcor Cos. asset, the 256-unit community was completed in September 2017, with a $30.5 million loan held by HUD, funded in 2015. The property, consisting of 12 three-story buildings spread across more than 17 acres at 1700 Bagdad Road, offers one-, two- and three-bedroom units ranging from 743 to 1,270 square feet. Rents start at $835 and go up to $1,165 per month. The amenity package includes a fitness center, business center, community room, playground, swimming pool, laundry facilities and 295 parking spaces.
Heights on Parmer
Pedcor Cos. third community on our list, the 266-unit fully affordable Heights on Parmer encompasses 13 buildings spread across nearly 20 acres at 1500 East Parmer Lane in the Dessau submarket. A HUD loan in the amount of $26.8 million was provided in March 2015. The property offers one-, two- and three-bedroom units ranging from 723 to 1,231 square feet, while rents range from $919 to $1,277 per month. Common-area amenities include a fitness center, business center, community room, playground, swimming pool, waterscapes, laundry facilities and 662 parking spaces. The property has a second phase underway that will bring 80 units online, with estimated completion set for the end of 2018.
The Reserve at Springdale
Another Ryan Cos. asset, the 292-unit community consists of four buildings spread across more than 21 acres at 5605 Springdale Road in the Berkman submarket. The property received a $24.3 million construction loan, issued in July 2015 by Austin Affordable Public Facility Corp., with BOK Financial as trustee. The unit mix features one- to three-bedroom apartments ranging from 639 to 1,202 square feet and rents start at $913 and go up to $1,255 per month. Amenities at the community include a fitness center, swimming pool, playground, business center and 464 parking spaces.
Images courtesy of Yardi Matrix