Invesco Real Estate has acquired The Arnold, a 346-unit apartment community in Austin, Texas, from Transwestern Development Co. for an undisclosed amount. The deal also included 9,450 square feet of ground-level retail space at the property. The Arnold was 95 percent occupied at the time of the sale.
“Transwestern Development Co. takes pride in our ability to respond to growth patterns we see in a market,” Josh Delk, Transwestern Development Co.’s vice president, told MHN. “Transit-oriented, mixed-use development in high-growth submarkets are critical components to our development strategy, and The Arnold was exactly that. It allows for reduced parking and other operational cost-sharing measures while driving demand with high-quality locations and a complementary mix of uses.”
Located at 1621 E. Sixth St., The Arnold is situated in what’s referred to as the city’s “hip East Sixth District.” Transwestern Development Co. first broke ground on the property about four years ago and opened it in July of 2016. The Arnold’s unit mix comprises studios, one- and two-bedroom units ranging from 566 to 1,738 square feet, according to Yardi Matrix. Units include stainless steel appliances, quartz countertops, custom wood cabinets, gourmet prep island, full-sized washer and dryer connections, bike storage and private balconies.
Amenities at The Arnold include a resort-style pool, an activity courtyard with bocce ball court, dining area, outdoor fireplace and grilling area, plus a roof deck with views of downtown Austin. There’s also an indoor lounge with an interactive cooking kitchen, televisions and business meeting areas, a state-of-the-art fitness center with yoga studio, an on-site Bike Share Austin bike station, and private storage units.
The Growth of the East Side
The Arnold is convenient to public transportation with the Austin MetroRail running from the city of Leander into downtown Austin, and the Plaza Saltillo station adjacent to the property. That allows for easy access to the Central Business District, the University of Texas and the popular Rainey Street entertainment district.
“The majority of Austin’s growth is moving east, and The Arnold is at the epicenter of new development activity and anchored by the light rail stop at Plaza Saltillo, the first rail stop leaving downtown Austin,” Delk said. “The property itself was the leader among the competitive set in amenity offerings, and the energy that has been created by the mix of uses including office, residential and retail is difficult to create in more traditional projects.”
Transwestern Development Co. has other properties in the area, including an adjacent creative office building and two multifamily projects—the 139-unit Indie Apartments and Candela, a luxury community.
The area has been increasing in popularity thanks to its unique and highly attractive entertainment and dining experience.
“East Sixth, while rapidly changing and going through gentrification, still feels much like how Austin felt before going into the cycle,” Delk said. “It attracts a wide array of people, from young millennials just graduating college to empty-nesters and beyond. The result is a very relaxed, trendy and fun atmosphere for everyone, which is why many of Austin’s new restaurants and bars are opening on East Sixth.”
In November, Transwestern Development Co. sold the 375-unit RiverVue Apartments, situated within the popular mixed-use Waterside development in Fort Worth, Texas, to St. Regis Properties.
Image courtesy of Yardi Matrix