SWBC Acquires Value-Add Asset in West Austin
SWBC plans to further upgrade the rental units and bring the garden-style community up to current standards for high-end assets.
SWBC Real Estate and International Capital have formed a joint venture to acquire Falconhead Apartments, a 248-unit property located near Lake Travis in Austin, Texas. The deal is part of SWBC’s value-add investment program.
Completed in 2003, the 11-building garden-style community occupies nearly 18 acres at Ranch Road 620, adjacent to Falconhead Golf Club. SWBC acquired it from Connell Real Estate & Development Co., which, according to Yardi Matrix data, held ownership of the property since August 2011. For the current transaction, Voya Financial has originated a $35 million acquisition loan.
Planned upgrades
The seller invested approximately $4 million in various renovations at the property. The new owner plans to further upgrade the rental units and bring the property up to current standards for high-end assets.
The unit mix at Falconhead comprises one- to three-bedroom floorplans ranging from 992 to 1,793 square feet and feature fireplaces in top-floor apartments, private balconies/patios, semi-private entries and outside storage. Common-area amenities include a fitness center, a business center, a clubhouse, an outdoor pavilion, a fireplace retreat with outdoor games, a new playground area, a dog park with splash pad and 250 parking spaces.
The property was 94 percent occupied at the time of sale. Kelly Witherspoon, Ryan Epstein and Justin Cole of Berkadia represented the seller in the transaction. Last month, Berkadia originated a $16 million Freddie Mac acquisition loan on behalf of 37th Parallel for the purchase of Cashel Springs in Houston.
