Austin Value-Add Portfolio + Re-Zone
1,308 Units / 3,700 beds (5 Assets) Multifamily | Austin TX
2014 - 2016
Acquisition Date
3 - 6 Years
Hold Period
$131.6M
Total Capitalization
$43.8M
Equity
OUR PORTFOLIO
Case Studies
Description
The Austin Value-add portfolio “The Ballpark Portfolio”is an assemblage of 5 contiguous student housing communities (Ballpark North, Ballpark South, Ballpark East, Ballpark West, Town Lake) located in the explosive growth corridor of East Riverside in Austin Texas. Together, the portfolio consists of 1,308 units or 3,700 student housing beds. Each property is equipped with a full suite of student housing amenities including gated access, resort-style swimming pools, outdoor sporting facilities, grill/picnic areas, fitness center, and study lounges.
Location
Ballpark North:
4600 Elmont Dr
Austin, TX 78741
Ballpark West:
1600 Wickersham Ln
Austin, TX 78741
Ballpark East:
1515 Wickersham Ln
Austin, TX 78741
Ballpark South:
4700 E Riverside Dr. Austin
TX 78741
Towne Lake:
1109 S Pleasant Valley Rd
Austin, TX 78741
Opportunity + Execution
Execution: Value Add + Re-zone | Deal Source: Off-market
- Part of a long-term investment strategy to acquire contiguous property in an area well positioned to capitalize on Austin’s explosive growth and path of gentrification
- Acquired off-market through proprietary relationships at a price below market levels
- Designed and executed capital improvement plan focused on unit interiors and exterior/infrastructure rehabilitation
- The team on the ground shadow property-managed the portfolio – very hands-on investment style with in-house construction management
- Realized value-creation (Improved operational cash flow by 80%) provided for the ability to re-finance out a significant portion of the invested equity in less than 3 years
- Part of a 100-acre assemblage adjacent to downtown Austin that the team re-zoned from 1M SF to 9M SF
Opportunity + Execution
- The asset acquisitions were part of a strategic 100-acre land assemblage
- Area adjacent to downtown Austin and Oracle HQ; minutes away from Austin-Bergstrom International Airport
- Re-zoned from 1M SF of existing residential to 9M SF of mixed-use developable space
- It was recorded as the largest re-zone in the urban core of Austin at the time
- Envisioned & marketed opportunity for a large-scale mixed-use redevelopment opportunity
- Realized value-creation + re-zone allowed the team flexibility to exit to a broader pool of buyers (value-add + developers) – project was ultimately sold as a cash-flowing covered land play, and today is a $4B re-development