Creekstone Partners Invests $61M in Austin, Denver

HOUSTON-Creekstone Partners has added two more class A multifamily properties totaling 640 units to its expanding portfolio. The locally based investor, a division of Creekstone Cos., acquired The Reserve at Walnut Creek in Austin, TX for $19.1 million and Alexan Castle Pines in Castle Rock, CO, in suburban Denver for $41.5 million. The 284-unit Reserve at Walnut Creek was purchased from a group of investors that included locally based Creekstone Builders, and the 356-unit Alexan Castle Pines was purchased from Atlanta-based TCR Castle Pines Limited Partnership. Allianz Life Insurance Co. of North America provided the financing for both deals. Both properties were acquired through a Delaware Statutory Trust structure, which is very popular among 1031 exchange investors. “The DST is becoming the preferred way for 1031 sponsors to provide an investment like a tenant-in-common structure,” says Marc Goldstein, principal of Creekstone Partners. “The DST allows for 90 investors and a much lower minimum investment compared to a TIC.”Goldstein tells GlobeSt.com that Creekstone Partners plans to make more acquisitions in Austin and Denver. “These two cities are places where people love to live,” he says. “They are prime spots for growth as young people continue to move there.” Moreover, he notes that there is very little construction going on in both markets compared to historic levels. “We just think both of these cities provide a lot of upside,” he adds.The Reserve at Walnut Creek is Creekstone Partners’ second acquisition in Austin. It sits on 14-acres at 8038 Exchange Dr. in the middle of Austin’s Walnut Creek Business Park. It offers a mix of 156 one-bedroom units and 128 two-bedroom units. The garden-style apartment units range in size from 730 sf to 1,248 sf and range in rents from $675 per month to more than $1,100 per month. The complex is 91% occupied and has an average rental rate of $895 per month. Alexan Castle Pines is Creekstone Partner’s second acquisition in Denver, and the firm has a third property under contract, Goldstein says. Situated on 28 acres at 520 Dale Court, the property features a mix of 137 one-bedroom units, 144 two-bedroom units and 75 three-bedroom units. Units range from 749 sf to 1,355 sf and include mountain views. The complex is 88% occupied.