TerraCap Management is expanding its Sun Belt portfolio with the acquisition of a recently built community in the Cedar Park suburb of Austin, Texas. The firm acquired Latitude at Presidio from an undisclosed seller who was represented by Walker & Dunlop’s Matt Pohl and Kevin Dufour.
The apartment complex was built in 2017 and offers 337 one-, two- and three-bedroom units with an average floorplan of 959 square feet. The units were built with stainless steel appliances, USB charging ports and white quartz countertops, while the community’s amenities include a pool, a gaming room, an outdoor kitchen, a two-floor fitness center, a coffee bar, a dog park and an outdoor lounge area with fire pits.
Located at 3440 Ranch Trails, Latitude at Presidio is near Interstate 35 and gives residents a 25-minute commute to downtown Austin. TerraCap also tapped ZRS Management as the community’s new property manager. Steve Good, partner & national director of acquisitions at TerraCap, said in prepared remarks that the firm’s goal is to find more opportunities and build a long-term presence in the Austin metro.
Austin’s rent growth
According to a Marcus & Millichap report on Austin’s multifamily market for the second quarter of 2022, the metro is seeing its second year in a row for average rent growth. The Austin metro saw an 11.3 percent increase in year-over-year effective rent, to $1,749 per month in the second quarter of this year. Last year, Austin saw a 24.8 percent gain, putting it in sixth place for largest year-over-year rent growth across the U.S. The metro is also expected to be in the top 10 list again with its sustained growth in 2022 so far, according to the report.
While TerraCap builds out its Austin footprint, the firm has also been expanding its presence in Atlanta and Raleigh, N.C. The company acquired a 288-unit community in Atlanta in August and a 346-unit community in Morrisville, N.C., in July. TerraCap’s portfolio includes more than 10 million square feet of assets, along with more than $2.1 billion in assets under management.