(To read more on the multifamily market, click here.)
AUSTIN-The Hayman Co. of Troy, MI has added to its Austin multifamily inventory with the $25.05-million purchase of four apartment complexes totaling 702 units and 507,118 sf. Hayman has paid Dallas-based ITW Mortgage Investments III about $35,613 per unit or $49.30 per sf.
Area construction sources tell GlobeSt.com the purchase price was far below current average replacement cost of about $75,000 per unit and an average hard construction cost of about $125 per sf. The properties are the 261,997-sf, 23-year-old Coppermill Apartments at 1000 N. Lamar Blvd.; 87,097-sf, 26-year-old Gateway Apartments at 1804 Rundberg Lane; 81,144-sf, 27-year-old Woodstone Apartments at 4021 Steck Ave.; and 76,880-sf, 22-year-old Quail Run Apartments at 1200 Mearns Meadow Blvd.
The apartments have an average occupancy of 95%, according to GMH Capital Partners brokers Eric Mattson Jr. and Morgen J. Busch who represented the seller. The buyer negotiated for itself. Average monthly rents at Coppermill are $656; Gateways, $501; Quail Run, $512; and Woodstone, $642.
Mattson says he is not surprised by the high average occupancy in the acquired portfolio. "The Austin apartment market is experiencing an upturn with increasing rental rates and declining vacancy rates," says Mattson, vice president of GMH Capital Partners' Investment Services Division. "The four apartment properties should continue to perform well under new ownership."
The deal took about three months to complete, from letter of intent to closing, says Busch. "The property was fully marketed for about six weeks and there was a definitive call for offers date," he says. "The Austin multifamily portfolio provided the Hayman Co. a unique opportunity to acquire a substantial portfolio of apartment complexes with excellent amenities in an outstanding location." Hayman's first purchase in Austin was the Woodmark Apartments in late 2005.
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