Drever Acquires 308-Unit Apartment Complex for $17.75M

AUSTIN, TX-Drever Opportunity Fund LP has paid $17.75 million for The Village at Gracy Farms, a 308-unit luxury apartment community on 17 acres in Northwest Austin. Occupancy is at about 91%.

The $57,600-per-unit price is one of the lowest, if not the lowest, price per unit paid in Austin for a class A multifamily complex since the technology bubble burst. The seller, which local sources tell GlobeSt.com is Prudential Real Estate Investors, acquired the property 14 months ago for $82,800 per unit. The 30% discount for Drever is in response to a significant drop in vacancy and face rents combined with a jump in owner concessions to attract new tenants.

Paul Odland, president and CEO of Concierge Asset Management of Tiburon, Calif., sponsors of the Drever DOF Fund, describes the Austin apartment market as “on a slippery downslope,” a place where rents are falling, expenses increasing and some cash strapped owners are unable to maintain their properties and are deferring maintenance.